SINGAPORE: The Singapore Exchange on Wednesday (Oct 25) posted a 9 per cent rise in net profit in its fiscal first quarter for 2018 to S$91 million, supported by higher revenue from equities and fixed income.
The bourse's total revenue for the quarter was S$204 million, up 7 per cent from a year earlier.
Earnings per share for the quarter was 8.5 cents, up 9 per cent from a year ago, while the interim dividend per share remain unchanged at 5 cents.
Equities and fixed income contributed revenue of S$100 million, up 2 per cent from a year earlier and accounting for 49 per cent of total revenue.
The bourse said listing revenue came in at S$13 million, up 6 per cent from S$12.2 million a year ago.
Derivatives revenue rose 14 per cent to S$11 million, contributing to 39 per cent of total revenue.
Mr Loh Boon Chye, chief executive officer of SGX, said in a statement that record trading activity in the local bourse’s key foreign exchange (FX) futures contracts and traction in its fixed income business reaffirmed its diversification strategy into those asset classes.
"Looking ahead, we expect the momentum in market activity to continue and return to higher levels of past years. We have made considerable progress in delivering on our priorities," he said.
"Just last week, we opened our United States office in Chicago and signed a collaborative listings agreement with Nasdaq. These are part of our efforts to grow a global client base and increase international participation across asset classes in our markets. We are seeking opportunities to collaborate with other exchanges to expand our businesses, as well as evaluating investments and partnerships to grow our FX, fixed income and commodities businesses."
Mr Stephen Innes, head of trading (APAC) at OANDA, said SGX’s recent steps to boost its appeal as a listing destination is a good one that allows the bourse to expand its global client base and attract Asian tech firms.
"Teaming up with Nasdaq encourages broader asset classes to be available to local investors. SGX branding themselves with other exchanges opens it up to a broader base of clients and investors and allowing them to recognize and invest in Singapore companies. It is definitely moving in the right direction.”
Meanwhile, Mr Low said some the local bourse could expect some 10 to 12 initial public offerings (IPOs) in the pipeline by the end of this year, pushing the current number of 18 SGX IPOs this year to more than 20.
Shares of SGX fell 0.13 per cent to close at S$7.57 on Wednesday.