* Quarterly net profit falls 35 pct to S$84.5 mln
* Profit in line with expectations of S$87 mln
* Average trading value in Q1 drops 51 pct to S$1.3 bln
(Adds details)
By Kevin Lim
SINGAPORE, Oct 15 (Reuters) - Singapore Exchange (SGXL.SI)
(SGX), Asia's second-largest listed bourse, said on Wednesday
quarterly net profit fell 35 percent -- in line with market
expectations -- as investors fled slumping stock markets.
"Notwithstanding the current turbulence in global financial
markets, SGX business remains robust and profitable, bolstered
by derivatives trading," chief executive Hsieh Fu Hua said in a
statement.
SGX, like many stock market operators around the world, has
seen revenues hurt by the sharp selloff in equities which cut
the value of shares traded and slowed initial public offerings
to a trickle.
Selling in stock markets accelerated from mid-September as
the 14-month long global financial crisis suddenly intensified.
SGX reported a net profit of S$84.5 million ($57.56
million) for its fiscal first quarter ended September, down
from S$130 million a year ago and just missing the S$87 million
average estimate of three analysts polled by Reuters.
The Singapore operator's average daily trading value halved
to S$1.3 billion from S$2.6 billion a year ago, while the
number of IPOs plunged to 11 new issues worth around S$300
million from 22 issues worth S$1.9 billion a year ago.
"Equity turnover on SGX has fallen by more than half since
peaking at S$3 billion per day in mid-2007," Merrill Lynch,
which has an "underperform" rating on SGX, said in a report
last week.
"On top of generally poor market sentiment, fewer new
listings and less frenetic trading in China-related S-shares
have depressed turnover," Merrill added.
SGX said at its annual general meeting on Oct 3 it was
confident of making a profit this financial year, despite the
sharp fall in trading volumes, as steady revenue sources such
as derivatives clearing fees and data sales exceeded operating
expenses. [ID:nSIN180098]
SGX is the second-largest listed exchange in Asia, ranking
behind the Hong Kong Exchanges & Clearing (0388.HK) and ahead
of the Australian Securities Exchange Ltd (ASX.AX).
HKEx reports its July-September results on Nov. 12, while
ASX will post results for the six months to end December on
Feb. 17.
Shares of SGX have slumped 56 percent so far this year as
investors worried the financial crisis and a global economic
slowdown would slash revenues.
(Editing by Kim Coghill)
