Singapore Exchange profits rose 7 percent in six months


Singapore Exchange Ltd said on Thursday that its first half-year profit increased by 7% thanks to broadly supported gains across all asset classes and record volumes in key contracts.

The exchange operator, which derives about two-thirds of its revenue from trading stocks and equity derivatives, said trading volumes for its flagship iron ore contracts have had the best half-year ever.

The trading volume for iron ore derivatives increased by 46% as demand increased due to China’s tightening of its zero-COVID restrictions, accelerating the company’s financialization of iron ore and expanding its range of services.

“We will continue to expand our customer coverage in the US and Europe to respond to the increasing activity, especially through the reopening of China,” said Chief Executive Officer Loh Boon Chye.

The exchange operator’s adjusted net profit was s$236.8 million ($178.53 million) for the period ending december 31, 2022, compared to S $ 221.8 million a year earlier.

The company now expects cost growth and capital expenditure for the full year to be at the lower end of the previously planned bandwidth of 7% -9% and S$70 million-s$75 million, respectively.

The company also announced an interim quarterly dividend of 8 Singapore cents per share, similar to last year.