SINGAPORE (Jan 21): Market operator Singapore Exchange’s second-quarter results were above consensus estimates and “a decent result in a tough environment,” Nomura says in a note Thursday morning.

SGX reported a 3.3% decline in net profit, with securities revenue down 10%, derivatives revenue up 1% and other revenues up 5.4%, all on year.

Nomura says the stable derivatives revenue in the tough market “was notable”, and that it expects derivatives products, especially relating to hedging of commodities, will continue to do well.

“We believe the results should be well received by the market, as it was above market estimates and the earnings demonstrated the strength of its diverse portfolio,” Nomura says, maintaining its neutral rating and target price of $7.90 a share.

As at 10.26am, SGX is trading 1.05% higher at $6.72 with 1.11 million shares traded.