Singapore Exchange's (SGX) full‐year results briefings rarely begin with applause.But with the market operator arresting its two‐year earnings decline with its best year since the global financial crisis, and capped by a 43 per cent jump in fourth‐quarter net profit, SGX chief executive Magnus Bocker was bound to find some love.

Fourth‐quarter profit attributable to shareholders rose to $87.6 million, or 8.19 cents per share, from the year‐ago net earnings of $61.1 million, as the total value of the market hit record highs in June. Operating revenue gained 28 per cent to $202.3 million, according to a results filing by SGX.

The bulk of SGX's growth came in the first six months of 2013, as investor sentiment picked up to drive total market capitalisation to record highs in June. Fourth‐quarter securities revenue jumped 40 per centto $76.6million.

The derivatives segment also grew, with fourth‐quarter revenue rising 35 per cent year‐on‐year as daily volume records were set for the Japan Nikkei 225 futures and options and the China A50 and
MSCI Indonesia contracts.

The initial public offering market also picked up, with 30 listings during the year raising $8.1 billion compared to $1 billion from 24 listings in fiscal 2012.

But Mr Bocker acknowledged ongoing challenges.Recent market volatility has shortened the windows for capital raising, and the exchange is hoping to address that to "help companies to raise money, whether it's up  time or down  time", Mr Bocker said. Securities turnover velocity, which indicates how often shares are
traded, has also remained stubbornly sluggish at 52 per cent for the year, down from 53 per cent a year ago despite a 13 per cent increase in total market capitalisation.

Source: AmFraser