Readying For a “Homecoming” Party? BUY

 Keep BUY, new TP of SGD12.30 from SGD11.60, 12% upside with 3% yield. The trading momentum in both equities and derivatives was robust in May, and Singapore Exchange’s 11MFY21F (Jun) data largely tracks our forecasts as well. The city state’s gradual economic reopening should lead to a return of growth for cyclical names, which would benefit SGX’s trading scene. The potential secondary listing of the US-listed Singaporean tech companies could further spark investor interest and boost trading activities as well, although such plans remain contingent at this point.