S'pore SGX reaps in profit
Saturday, July 28, 2007
SINGAPORE EXCHANGE (SGX), Asia's second-largest listed bourse, yesterday said its quarterly net profit more than tripled, driven by a surge in trading of stocks and derivatives, and due to a writeback.
SGX which ranks behind Hong Kong Exchanges and Clearing Ltd (HKEx) in market capitalisation, but recently overtook the Australian Stock Exchange (ASX) reported net profit of $176.3 million for its fiscal fourth quarter to end-June, up from $55.1 million a year ago.
Net profit before a writeback was $110.8 million. SGX said its full-year net profit was $421.8 million, up from $187.6 million in the previous year. SGX has been growing rapidly as it attracts listings from Chinese companies in particular, and has seen a boom in trading of stocks and derivatives as regional indexes hit record or multi-year highs.
Analysts say near-term profit hopes depend on equity volumes, which could be affected if markets stall or retreat from recent record highs.
The daily average trading turnover jumped 89.2 per cent to $2.28 billion in the April-June quarter, from $1.21 billion in a year before, SGX said. Fourth-quarter operating revenue rose to $190.1 million from $120.8 million a year earlier, with securities market revenue hitting $116.6 million, up from $62.4 million.
Net derivatives clearing revenue rose to $34.1 million in the fourth quarter, from $28 million a year earlier. Shares in SGX have risen about 77 per cent so far this year, outperforming ASX and HKEx gains and a 17 percent rise in the benchmark Straits Times index .
The Tokyo Stock Exchange took a 4.99 per cent stake in the Singapore Exchange in June, partly boosting SGX shares to record highs this month. But analysts warned its share price might have run ahead of valuations after hitting a record high and might be ready for a correction.
SGX, which has a market value of $7.4 billion, is trading at 32 times 2008 earnings.
Reuters
SGX which ranks behind Hong Kong Exchanges and Clearing Ltd (HKEx) in market capitalisation, but recently overtook the Australian Stock Exchange (ASX) reported net profit of $176.3 million for its fiscal fourth quarter to end-June, up from $55.1 million a year ago.
Net profit before a writeback was $110.8 million. SGX said its full-year net profit was $421.8 million, up from $187.6 million in the previous year. SGX has been growing rapidly as it attracts listings from Chinese companies in particular, and has seen a boom in trading of stocks and derivatives as regional indexes hit record or multi-year highs.
Analysts say near-term profit hopes depend on equity volumes, which could be affected if markets stall or retreat from recent record highs.
The daily average trading turnover jumped 89.2 per cent to $2.28 billion in the April-June quarter, from $1.21 billion in a year before, SGX said. Fourth-quarter operating revenue rose to $190.1 million from $120.8 million a year earlier, with securities market revenue hitting $116.6 million, up from $62.4 million.
Net derivatives clearing revenue rose to $34.1 million in the fourth quarter, from $28 million a year earlier. Shares in SGX have risen about 77 per cent so far this year, outperforming ASX and HKEx gains and a 17 percent rise in the benchmark Straits Times index .
The Tokyo Stock Exchange took a 4.99 per cent stake in the Singapore Exchange in June, partly boosting SGX shares to record highs this month. But analysts warned its share price might have run ahead of valuations after hitting a record high and might be ready for a correction.
SGX, which has a market value of $7.4 billion, is trading at 32 times 2008 earnings.
Reuters
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