SGX still better off than most despite Q3 contraction

Hong Kong, Australia and London exchanges will love to have SGX's strong SDAV.

Here's more from Maybank Kim Eng:

In line with expectations. 1QFY13 reported net profit came in at $74m, which was down 15% yoy against 1QFY12, which experienced one of the strongest SDAV in recent periods. On a qoq basis however, net profit was up 22%. SGX also announced its full-year operating expense guidance at SGD295m-SGD305m, which was welcomed transparency, but overall we do not expect this set of numbers to move the needle in terms of earnings expectation going forward.

ASEAN markets outperforming in terms of SDAV. Compared to other major exchanges such as Hong Kong (-35% yoy), Australia (-31% yoy), London (-32% yoy), we believe SGX had a much better showing in terms of SDAV. The relative attractiveness of ASEAN markets played a part, with ASEAN ex SGX down 17%. This reaffirms SGX’s strategy in trying to promote this bloc via the ASEAN Trading Link, which has now started with Bursa Malaysia and Stock Exchange of Thailand.

Healthy derivatives revenue now a recurring theme. Despite a slight decline in volumes, revenue in this segment was up a steady 5% yoy. This was mainly attributed to better management of collateral balances, in turn from the network effect of more margins being placed in Singapore as the product suites expand. This segment, which made up 28% of Group revenue (vs 36% for securities trading), will remain a key pillar of profitability for SGX going forward.

On the right track. Management remains committed to transforming Singapore’s securities market, via various initiatives such strengthening regulatory and risk management capabilities, raising the bar for listings and investor education. Many of these steps do not yield tangible results, but we believe will put the exchange on a firm path towards establishing a strong competitive niche in Asia.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia