SINGAPORE Exchange posted a rise in annual profit on Thursday and raised its dividend, buoyed by higher revenue from its currencies and commodities businesses amid growing transactions in foreign exchange futures.
Higher currency and commodity derivatives volumes helped counter a decline in market turnover in the equity unit, as uncertainty in the global interest rate outlook and a slowing Chinese economy weighed on market sentiment.
“Our currencies and commodities franchises are on a healthy growth momentum, with volumes doubling over the last three years,” said Group Chief Executive Officer Loh Boon Chye.
The city-state hosts more than $4 trillion of assets under management as global money managers expand their operations and wealthy Chinese and other individuals flock to the enclave to set up family offices, helping Singapore’s growing status as a major economic hub.
The Monetary Authority of Singapore said last week it had formed a review group to recommend steps to strengthen the development of the equities market in the island country.
The review group would suggest measures to attract primary and secondary listings to Singapore and improve liquidity.
“We will work closely with the review group set up by the Monetary Authority of Singapore to recommend measures to strengthen equities market development in Singapore,” Chye said.
The bourse operator posted annual adjusted net profit of SG$525.9 million ($396.10 million), a 4.5-percent rise over the year earlier.
“Given better operational trends and SGX’s willingness to raise dividends at regular intervals, investors could move to position in SGX, especially on heightened market volatility,” analysts at Citi said.
Cash revenue from equities business declined 2.1 percent, but the company’s chief flagged that the operations had shown stronger activity in the second half of the financial year.
The company also declared a final quarterly dividend of 9 Singapore cents per share, compared with 8.5 cents apiece last year.
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