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Singapore Exchange reported its highest quarterly earnings in about seven years, boosted by a strong performance in the fast-growing derivatives business.
SGX posted a 28% rise in earnings to $99.3 million, or 9.3 cents a share, for the first quarter ended September, from a year ago. Bloomberg consensus estimates were for earnings of $93.3 million on the back of $219 million in revenue.
Operating revenue rose 30% to $219.6 million, following growth in all its businesses apart from issuer services. Securities revenue increased 14% to $55.9 million and accounted for 25% of total revenue while derivatives revenue increased 69% to $90.9 million and accounted for 41% of total revenue. Market data and connectivity revenue increased 12% to $21.6 million while depository services revenue increased 24% to $29.7 million.
During the quarter, securities daily average traded value increased 27% to $1.23 billion. Total traded value rose 19% to $74.8 billion. Average clearing fee was 2.9 basis points, down 6% from 3.08 basis points a year earlier. Turnover velocity for the quarter was 46%.
In its outlook, SGX says sustained volatility with persistent weak market sentiment may pose challenges in the coming quarters.
“We will continue our efforts to improve liquidity in our securities market, which are beginning to have a positive impact. Positive developments in our commodities and currency products further diversify our derivatives revenue, and enhance the resilience and sustainability of our business model,” says SGX.
SGX closed 0.3% lower at $7.51.
This article first appeared in The Edge Singapore Market Report.
Read more: 8 Things I Learned from SGX’s AGM 2015