SINGAPORE April 23 Singapore Exchange Ltd
reported a 22 percent fall in net profit on Wednesday,
hit by a continued slide in share trading volumes, though a
steady performance by its derivatives, listings and market data
businesses meant it fared better than analysts expected.
SGX posted a net profit of S$75.8 million ($60.33 million)
for the March quarter, above the S$73.8 million average of five
analysts polled by Reuters.
The exchange, Asia's third largest listed bourse by market
value, has been hit by a slide in securities trading volumes
following a penny stock crash last October. In March, the volume
of securities traded on the exchange was 25 percent lower than a
Since that crash the bourse and Singapore's central bank
have proposed a series of reforms to try and improve liquidity
in the market and reduce the prevalence of penny stocks by
raising the minimum share price for a company listed on its main
Revenue from share trading and other listed-securities was
32 percent lower than a year ago at S$52.3 million, while
derivatives was down 2 percent to S$52.3 million.
"We are confident that our securities market will recover
over time and we remain committed to our long term growth
strategies," the exchange said in its outlook statement
SGX's share price is down 3.9 percent so far this year,
underperforming Hong Kong Exchanges and Clearing Ltd
which is up 10.7 percent.
($1 = 1.2565 Singapore Dollars)
(Reporting by Rachel Armstrong; Editing by Michael Urquhart)