SGX Q3 profit slumps on the back of failed ASX deal

SINGAPORE - Weighed down by the cost of its failed takeover bid for the rival Australian Securities Exchange (ASX), the Singapore Exchange (SGX) has posted its lowest quarterly profit in two years.

The A$8.4-billion (S$11-billion) bid for the ASX, which was rejected by the Australian government earlier this month on grounds of national interest, added S$12 million to the SGX's expenses and pulled down its fiscal third-quarter net profit by 10 per cent from last year to S$67.02 million.

Securities trading was lacklustre in the quarter as investors grappled with the twin crises of unrest in the Middle East and the massive disaster in Japan. Still, securities trading revenue grew 5 per cent to and accounted for 44 per cent of the SGX's revenues. Also, derivatives, which investors turn to in times of turmoil, grew 21 per cent.

ORIGINAL SOURCE

Content used in this blog remain the property of their respective owners.