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SGX reports 2% drop in Q2 net profit

The Singapore Exchange (SGX) posted a two per cent on-year drop in its second quarter net profit at S$75 million, a shade lower than market expectations.

SINGAPORE: The Singapore Exchange (SGX) posted a two per cent on-year drop in its second quarter net profit at S$75 million, a shade lower than market expectations.

At an earnings briefing, SGX said the securities market had a challenging quarter due to lower participation by both retail and institutional investors.

Revenue from the securities business fell 13 per cent to S$52.2 million for the quarter ended 31 December 2013.

The decline was offset by growth in the derivatives business which rose 16 per cent to S$52.5 million.

The securities and derivatives businesses each contributed to 32 per cent of total revenue -- the first quarter that they came in on par.

SGX said the total traded value for securities was 18 per cent lower at S$64.1 billion. Meanwhile, the total volumes for derivatives grew 18 per cent to 26.3 million contracts.)

Total revenue for the second quarter was up two per cent on-year at about S$165 million.

SGX CEO Magnus Bocker added that the Catalist market has also performed well.

"You will see that the traded value on our mainboard was down 22 per cent compare to the average of 18 per cent, while the Catalist market was actually up 141 per cent. Catalist now represents eight per cent of our total market compare to 2.5 per cent a year ago,” he said.

“If you look at the velocity, that is to say the market cap versus the turnover for our Catalist companies, it is significantly higher than the turnover velocity for our mainboard listed companies so it is a very attractive platform.

“I would definitely recommend a lot of companies on the mainboard that are today having less turnover, less volume to reconsider their listing on the mainboard to think about Catalist."  

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