From SARS year 2003 to end of 2005, the share price of Singapore Exchange Ltd almost tripled to $3.10. But for the two main broker firms in SGX, Kim Eng and UOB-Kay Hian, their prices hover only a little bit above history. See the left picture. It is from SGX website.
With SGX posted a historical 2Q result (quarter ending 31/12/05), I guess stockbrokers should follow its steps. UOB-KH will post its financial year report soon. We can expect it will announce at least a final 7 cents dividend. So its price target of $1.25 is almost guaranteed.
Kim Eng has announced a "dividend policy" last Nov. when it issued 3Q result. It wrote: The Directors believe that through several years of solid earnings and prudent strategic management of its assets, the Company has been able to fortify its balance sheet so that it can sustain all current business activities, comfortably manage a significant upturn in such business activities while having the flexibility to pursue expansion should the right strategic opportunities arise.
It is so optimistic. A generous dividend is almost seen.
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