Singapore Exchange Q3 net profit surges as trading volume jumps

Singapore Exchange Q3 net profit surges as trading volume jumps

SINGAPORE - Singapore Exchange Ltd (SGX) reported its largest quarterly profit since the 2008 financial crisis on Tuesday as a surge in trading volumes pushed its earnings up 26 per cent.

Net profit was S$97.7 million in the January to March quarter, well above the S$77.8 million earned a year earlier. That beat the S$95 million average forecast of six analysts surveyed by Reuters and was its highest since the quarter ending March 2008.

SGX said the daily average traded value of securities on the exchange rose to S$1.7 billion in the third quarter of its financial year, up from S$1.46 billion a year earlier and well above the S$1.2 billion posted for the October-December period.

The bourse's derivatives business saw an average daily trading volume of 479,235 contracts, a 52 per cent jump from the same quarter last year.

Despite the strong results, the bourse said maintaining this performance for the rest of the year will depend on whether the improved sentiment in global markets continues.

"Global economic conditions remain volatile. It is uncertain if current market conditions will persist," the exchange said in its outlook statement.

It added that its pipeline for initial public offerings and bond listings remain strong.

Shares of SGX have had a solid start to 2013, rising around 9 per cent so far, although trailing Australia's ASX Ltd , which has surged 17 per cent to overtake SGX as the region's second-largest bourse by market value.

Shares of Hong Kong Exchanges and Clearing Ltd, Asia's largest listed exchange operator, have fallen 2 per cent.

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