- Net profit S$65.4 mln; Reuters consensus S$60 mln

- CEO cautious on outlook, says to keep costs under check

- Derivative revenue surprise on the upside

- SGX shares fall 27 pct in 2011, underperform broader market.

SINGAPORE, Jan 16 (Reuters) - Singapore Exchange Ltd , Asia's third-largest listed bourse, reported its lowest profit since March 2009, as weakness in global markets hurt its core securities business, and the bourse operator gave a cautious outlook. The results were however above market expectations as volatility boosted SGX's derivatives revenue. SGX was hit by a sharp drop in securities turnover, as investors shunned risk, while fund raising activities in capital markets were curtailed due to Europe's debt crisis.

SGX's securities market revenue fell 34 percent to S$53.2 million in October-December from a year ago, hit by a 37 percent decline in securities daily average trading value to S$1.1 billion. Derivatives revenue rose 11 percent to S$37.7 million as volatile markets led to a rise in volume for derivative products, partly helped by increased bets on Nikkei options and Chinese futures. SGX shares ended 2.2 percent lower on Monday.

The Singapore bourse operator has a market value of about $5 billion, slightly below ASX. Hong Kong Exchanges and Clearing Ltd is the biggest listed bourse in Asia with a market capitalisation of $17 billion at the close of Friday's session.

Singapore's Straits Times Index dropped 1.3 percent to 2,756.49 at the close. All but four shares declined in the 30-member gauge.