Strong derivatives soften Q2 blow for SGX

SINGAPORE Exchange posted a 1.8 per cent decline in net profit for its fiscal second quarter amid a challenging quarter for the securities market that also saw penny stocks suffering a sell-off. But strong derivatives growth helped the group to beat profit expectations.

"Derivatives are now on par with our securities business . . . On the securities side, we had a very tough and challenging quarter," SGX chief executive Magnus Bocker said at a briefing.

Net profit slipped to $75 million, or 7.01 cents per share for the three months ended Dec 31, 2013. For the six-month period, however, net profit was up 11 per cent at $167.2 million, or 15.63 cents per share.