SINGAPORE (Aug 13): The Singapore Exchange reported a stellar set of results for FY2018 ended June 30, as all its businesses recorded stronger revenues. At the same time, the securities daily average value hit a five-year high; the number of bond listings and derivatives trading volumes also reached record highs. “More than two years ago, we began our strategy to build a multi-asset exchange. It is clearly now bearing fruit. Our efforts are getting endorsed,” says SGX CEO Loh Boon Chye at the company’s results briefing on July 27.

Earnings rose 7% y-o-y to hit a five-year high of $363 million on the back of higher revenue of $845 million. Its net cash position grew 5.6% y-o-y to $549.6 million. The company is paying a final dividend of 15 cents a share, up from 13 cents a share a year ago. This brings the total dividend for the year to 30 cents a share, up from 28 cents a share previously. If approved, this will be the highest annual dividend payout in 10 years.

There are some worrying signs ahead for SGX’s business, though. While the total securities market turnover value hit a high of $32.8 billion in February, it has fallen to $24.6 billion in July — the second-lowest figure in the six months. Likewise, the securities daily average value touched a high of $1.7 billion in February, but then declined to $1.1 billion in July — the lowest figure in the period. Total derivatives volume has been choppy; it recorded 16.9 million in July after bottoming out in March. However, the traded volume of Nifty 50 index futures — one of SGX’s popular derivatives products — has declined to 1.53 million in July from a high of 2.3 million in February.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook