HKEx Q3 net profit down 19 pct on dwindling volumes

HONG KONG Tue Nov 6, 2012 11:27pm EST

HONG KONG Nov 7 (Reuters) - Hong Kong Exchanges and Clearing Ltd, the world's No.2 exchange operator by market value, reported a 19 percent drop in third-quarter net profit on a sharp decline in trading volumes and a pullback in new listings, but the result beat estimates.

HKEx said it made a net profit of HK$1.004 billion ($129.5 million) i n July-September, down from the HK$1.24 billion earned a year earlier. This compares with expectations for HK$938 million, according to data from Thomson Reuters I/B/E/S.

Average daily turnover, a key determinant of exchange income, fell 27 percent in the first nine months of this year. To combat this, the HKEx bought the London Metal Exchange in June this year to expand into commodities trading.

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