Singapore Exchange (SGX) announced yesterday that CEO Magnus Bocker will be leaving by end Jun 2015. The board also announced that it will be looking for candidates, both internally and externally. This development is not totally unexpected as his contract is due for renewal this year.

Meantime, the stock has performed well so far this year, up 5.2% since the start of the year, slightly ahead of the benchmark STI’s gain of 2.2% for the same period. Overall, with the 4-month period ahead to look for a replacement, we do not expect this development to have a major impact on its operations.

We have a HOLD rating on the stock with a fair value estimate of S$7.52.

Source: OCBC Research - 25 Feb 2015