SGX posts 3.3% drop in Q2 profit, to pay 5 cent per share dividend

SINGAPORE Exchange's (SGX) net profit for the second fiscal quarter slipped 3.3 per cent as stock-market activity dried up.

The market operator posted a profit of S$83.7 million, or 7.8 Singapore cents per share, for the three months ended Dec 31, 2015. For the first half of the fiscal year, net profit was up 11.5 per cent at S$183 million, or 17.1 Singapore cents per share.

SGX will pay a dividend of five Singapore cents per share for the quarter. SGX shares closed at S$6.65 on Wednesday before the results were announced.

Profit from the securities market fell 8 per cent year on year during the second quarter to S$54.8 million as the daily average traded value on the securities market dropped 11 per cent to S$0.93 billion.

Operating profit from the derivatives market, however, rose 8.3 per cent to S$39.1 million as collateral management, licence, membership and other revenue from the business segment increased 15.5 per cent to S$21.2 million.

SGX said it expects the outlook for global markets to remain "uncertain". The company is reducing its expected operating expenditure for fiscal 2016 to between S$415 million and S$425 million from the initial guidance of between S$425 million and S$435 million.

The expected spending on technology-related capital has also been cut to between S$70 million and S$75 million, from the initial S$75 million to S$80 million forecast.