Singapore Exchange Ltd shares advanced approximately 2.8% during afternoon trading on Monday, reaching S$18.06 after touching an intraday high of S$18.11. Trading volume approached 3.9 million shares as the broader Straits Times Index rose 0.5%.
Financial Performance Highlights
The exchange operator reported a 7.6% increase in net revenue to S$695.4 million for the six months ending December 31. Adjusted net profit, which excludes certain non-cash and one-time items, climbed 11.6% to S$357.1 million. CEO Loh Boon Chye described this as the company's strongest half-year performance to date.
Dividend Details and Outlook
SGX declared an interim dividend of 11 Singapore cents per share, with an ex-dividend date of February 12 and payment scheduled for February 24. The company maintains its commitment to increase quarterly dividends by 0.25 Singapore cents through fiscal year 2028. Management reiterated medium-term revenue growth targets of 6-8% while emphasizing sustainable shareholder returns.
Segment performance showed mixed results: equities-cash net revenue increased 16.2% to S$223.9 million, while fixed income, currencies and commodities revenue rose 12.5% to S$178.9 million. However, equities-derivatives net revenue declined 5.6% to S$167.4 million. Foreign exchange volumes reached a record average daily volume of US$180 billion.
Market Context and Risks
The positive earnings report comes amid broader efforts to revitalize Singapore's equity market, including potential regulatory changes to facilitate dual listings with Nasdaq and reduce minimum share purchase requirements. While expenses increased 2.9% during the period, the company recorded a S$15 million non-cash goodwill impairment related to its indices business.
Investors are now focused on the February 12 ex-dividend date, after which attention will likely shift to trading volume trends that drive SGX's core fee revenue. The dividend yield currently stands around 2.5% based on third-party calculations.
