Monday, 12 February 2018

Singapore Exchange falls most in nine years amid India futures spat

A Singapore Exchange (SGX) sign sits outside its premises at the central business district in Singapore

Singapore Exchange Ltd stock fell the most since November 2008 in early trading Monday as investors reacted to the National Stock Exchange of India Ltd.’s move to end its licensing pact with the Lion City bourse.

NSE, together with other Indian markets, said on Friday night that they would end all licensing agreements with their foreign counterparts, and stop offering live prices to overseas venues. The steps would make it impossible for SGX to keep offering derivatives based on India’s benchmark Nifty 50, among its flagship products.

Singapore has become a hub of offshore trading for many markets. The significance of India’s move was highlight by several analyst notes published after India’s announcement, with at least three banks cutting their rating on the exchange operator’s stock. The company’s shares fell as much as 8.8 per cent in early trading, and saw the biggest decline on the benchmark Straits Times Index.

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