SGX net profit rose 2.8% to $99.7m in Q3

Its REITs sector contributed 20% of the overall securities daily average value in the quarter.

The Singapore Exchange’s (SGX) net profits for Q3 2019 rose 2.8% to $99.7m from $100.5m in 2018, attributed to increased activity and higher open interest amidst strong institutional demand, an announcement revealed.

Revenues also grew by 4.8% YoY to $228.8m from $222.2m in 2018. Operating profit was $118.2m from $117.9m last year, with earnings per share at 9.3 cents. The interim dividend is at 7.5 cents per share, which was previously at 5 cents.

SGX CEO Loh Boon Chye revealed that they have registered the daily average volume of more than one million contracts in Q3.

“Our REITs sector remained an outperformer with higher turnover, contributing 20% of the overall securities daily average value in 3Q FY2019. To meet investors’ demand, we expanded our range of daily leveraged certificates (DLCs) to include more single-stock DLCs,” Loh said.

“We also anticipate an improvement in our securities business. The recent halt in interest rate hikes will benefit equities markets, particularly our REIT sector,” he continued.

On the other hand, expenses increased by 6% YoY to $110.6m in Q3 from $104.4m in 2018, mainly due to higher staff costs and technology expenses.

Technology-related capital expenditure was $10.3m, down from $21.9m in 2018, that is said to be for the enhancement of our fixed-income trading platform and upgrade of our securities trading engine.

Operating expenses for FY2019 are expected to be between $445m and $455m, whilst technology-related capital expenditure is expected to be between $60m and $65m.