SGX’s Q3 profit falls 6.8% to S$83.1 million amid derivatives slump

SINGAPORE — Bourse operator Singapore Exchange (SGX) on Thursday (April 20) reported its fiscal third-quarter net profit fell 6.8 per cent from the corresponding period a year earlier amid a slump in its derivatives business.

For the three months ended March 31, SGX booked a net profit of S$83.1 million, down from S$89.2 million in the year-earlier period, as operating revenue decreased 1.5 per cent to S$202.7 million. Revenue from its equities and fixed-income business rose 1.1 per cent to S$103.1 million, but revenue from its derivatives business plunged 8.6 per cent to S$75.2 million. Revenue from its market data and connectivity business jumped 13 per cent to S$24.4 million.

SGX said securities daily average traded value increased 1 per cent to S$1.24 billion while total traded value increased 5 per cent to S$78.3 billion. Continued positive momentum in the equities market following the US Presidential Election last November contributed to the higher level of trading activity, with increased participation from both retail and institutional customers.

Looking ahead, SGX said: “While sentiments have improved, positive outcomes on US economic policies will be important to sustain trading activities.”

SGX’s board of directors declared an interim dividend of 5 cents per share for the quarter.