Singapore Exchange Limited has reported a 13 percent drop in its net profit in the fourth quarter, but increased its dividend and stressed that it is confident about prospects.
SGX and Asian competitors like Hong Kong Exchanges and Clearing have already seen a drop in stock market trading volumes and a slow down in new listings due to uncertainties in the euro debt crisis.
Magnus Bocker, chief executive of SGX, has been attempting to boost SGX’s trading volumes by introducing new products.
"As prospects of economic recovery improve, the demand for capital should provide SGX with the opportunity to attract more issuers seeking to raise capital," said Mr. Bocker.
SGX’s earnings fell to S$79.6 million (US$58.5 million) in the three months ended June 30, from S$91.2 million over the same period last year.
Income from securities also dropped 11 percent to S$72.4 million from last year, while income from derivatives fell 4.5 percent to S$34.2 million.
SGX spent S$17 million on software, equipment, plant and property compared with S$10.2 million in the previous year. SGX earnings for the fiscal year increased five percent to S$320 million, its second best-ever annual performance following the fiscal year ended June 2008.
SGX’s share price fell almost 8 percent in 2010, similar to the reverse suffered by HKEx but underperforming a 3 percent increase in the benchmark Straits Times Index.