Tuesday, January 19, 2010

SGX posts 4% rise in first half net profit

Got this article from the Straits Times. I am still wondering whether there is any conflict of interest considering that SGX is a listed company and yet manages the IPO for companies trying to get into SGX. Perhaps a separate regulator might be needed?

BOURSE operator Singapore Exchange (SGX) posted a 4 per cent rise in first-half net profit to $165.8 million after a bullish stock market in the later part of last year drove up trading volumes.

Revenue rose 6.3 per cent to $324 million as daily average total trading values of stocks rose to $1.6 billion for the period July 1 to Dec 31 last year, compared with $1.2 billion a year earlier.

Chief executive Magnus Bocker, who chaired his first briefing of SGX's results since taking over on Dec 1, said: 'Our stronger IPO pipeline suggests that the issuance side of our business is expected to see a better year across our markets and key sectors.'

Although Singapore lagged well behind Hong Kong last year with its strong listings record, Mr Bocker argued that SGX is doing a better job than many other global and regional exchanges. He also said that valuations for stocks in certain sectors such as banking remain very attractive.
Second-quarter revenue rose 2.7 per cent to $150.7 million. But net profit for the three months fell 3.9 per cent to $71.8 million.

One reason was a rise in operating expenses due to the payout to outgoing chief executive Hsieh Fu Hua and an initial payment to Mr Bocker

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