Singapore bourse posts record quarterly profit as trading surges

SINGAPORE - Singapore Exchange (SGX), Asia's third-largest listed bourse, posted a record quarterly profit yesterday as trading in stocks and derivatives surged to all-time highs.

Analysts said SGX was on track to expand its business by attracting more foreign listings and issuing more products such as single stock derivatives and Islamic investment products.

"SGX has a credible plan to grow its business on all fronts. And while revenues have increased, the management has also proved its ability to control costs," said Carmen Lee, an analyst at OCBC Investment Research.

The exchange, which in Asia ranks behind only Hong Kong Exchanges and Clearing (HKEx) and the Australian Stock Exchange (ASX), kicked off reporting for the Asian bourses, which have seen a surge in trading volumes in recent quarters.

"Our record performance reflects the strong underlying growth of the Asian region, our success in attracting foreign issuers and our effective positioning as Asia's offshore derivatives hub," chief executive Hsieh Fu Hua said.

SGX posted a net profit of S$50.1 million ($50.5 million) for January-March, almost double the S$26.2 million it made a year earlier.

SGX shares set a record day high of S$4.78 last Thursday and have risen about 52 per cent so far in 2006, boosting the company's market capitalisation to US$2.8 billion ($4.5 billion).

Shares in HKEx have jumped 74 per cent in the same period, while ASX has dropped 0.7 per cent.

- REUTERS