SGX Q3 profits hit by failed bid for Aussie exchange

The Singapore Exchange (SGX) today reported 10.2% decline in its third quarter profit, considering the Singapore dollar 12 million cost ($9.6 million) of the failed takeover bid of Australian Exchange last month.

Net profit for the quarter ended 31 March 2011, was down by 10.2% to SD 67 million on year-on-year, said SGX, adding that it was committed to seeking new opportunities in the Asian markets.

SGX’s revenue for the January-March quarter rose by 10% to SD 168.8 million on annual basis. The nine-month net profit was down by three% to SD 233.2 million though the revenue increased by 4.74% y-on-y to SD 500 million.

The merger implementation agreement with ASX was terminated after the Australian Treasurer's decision to reject the proposed merger on April 8, 2011, said SGX.

SGX CEO Magnus Bocker said, "Despite global uncertainties and tough market conditions, our performance was solid and strong in the quarter. We continue to expand our products and services including adding OTC clearing of Foreign Exchange Forwards and more metal futures."

According to Bocker, SGX is set to offer the world’s fastest trading engine and international liquidity hubs in the coming months as it launches a new computer-software based Reach initiative.

SGX was the third largest capital raising centre in the world during the third quarter, with 112 new listings having raised SD7.5 billion.

The exchange CEO highlighted Hong Kong’s Hutchison Port Holdings $5.5 billion initial public offer on SGX, which made it the world’s largest IPO so far this year and South East Asia’s largest IPO to-date.

"This reinforces SGX’s global position in the maritime transportation sector and as a favourable environment for listing of business trusts," he said.