Singapore Exchange Ltd. (SGX), operator of Southeast Asia’s biggest stock market, said second-quarter profit rose 17 percent as trading in equities and derivatives increased.
Net Income was S$76.3 million ($62 million) in the three months ended Dec. 31, from S$65.4 million a year ago, the company said in a statement today. That compares with the S$74.8 million average of six analyst estimates compiled by Bloomberg. Operating revenue rose 9.2 percent to S$161.8 million. SGX said its board declared a final dividend of 4 Singapore cents a share.
“Securities market continued to hold up from the first quarter,” Chief Executive Officer Magnus Bocker said in the statement. “Derivatives market achieved a record quarter following record volumes in China A50 futures and Japan Nikkei 225 options. Open interest on our derivatives market hit a new high, reflecting SGX’s attractiveness as a center for risk management.”
The average value of equities traded daily rose 11 percent to S$1.23 billion in the October-to-December quarter from a year earlier, according to data compiled by Bloomberg. Average daily transactions in the derivatives market increased 30 percent to a quarterly record high of 358,532 contracts, while open interest climbed 83 percent to 2.5 million contracts, SGX said.
Companies raised about S$16.7 million from initial public offerings in the three months through Dec. 31, compared with S$171.7 million a year ago, according to data compiled by Bloomberg. Dynasty Real Estate Investment Trust, owner of shopping malls in China backed by billionaire Li Ka-shing, canceled its S$956 million share sale due to weak demand, according to a statement in October.
While SGX has been trying to woo international companies to list on the city’s bourse, it lost IPOs such as Manchester United Ltd., the English soccer team with a record 19 national league championships, which listed in the U.S. Formula One’s stock sale in the city, where it hosts the sport’s first night race, has been put on hold.
“We have seen improved sentiments across capital markets globally leading to increased volumes,” SGX said in the statement. “We are well positioned to benefit if these sentiments continue. Our IPO and bond listings pipelines remain healthy.”
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