SGX posts strongest half-year performance; growth to continue from market revival measures

SINGAPORE – The Singapore Exchange (SGX) posted its best half-year performance since going public in 2000, and said trading activity and listings will continue to strengthen after new measures to revive the local stock market.

On Feb 5, SGX reported that net profit edged up 0.8 per cent to $342.7 million for the first half ended Dec 31.

Adjusted profit, after excluding certain non-cash and non-recurring items with less bearing on operating performance, rose 11.6 per cent to $357.1 million.

Revenue for the half-year increased 7.9 per cent to $736.2 million, from $682.2 million in the year-ago period.

“We achieved our strongest half-year performance, driven by sustained growth across our multi-asset business,” group chief executive Loh Boon Chye said.

“The resilience of our trusted platform has enabled market participants to diversify their investments and manage risk in a challenging global environment.”

He added that SGX is confident in delivering medium-term revenue growth of between 6 per cent and 8 per cent, alongside sustainable shareholder returns.

SGX declared an interim quarterly dividend of 11 cents per share, payable on Feb 24. This brings total dividends in the first half to 21.75 cents per share, up 20.8 per cent year on year.

SGX said it is confident that it can continue to deliver the 0.25 cents quarterly dividend increase until the end of the 2028 financial year, as previously guided.

Mr Loh said activity in the stock market has been robust, supported by the measures from the review group set up by the Monetary Authority of Singapore (MAS) in August 2024.

The review group recommended a slew of measures in 2025, such as the Equity Market Development Programme (EQDP), which has allocated $3.95 billion of the $5 billion pool to boost liquidity in the market.

Mr Loh noted that the securities daily average traded value rose 20 per cent year on year to $1.51 billion, the highest in five years.

The pipeline of initial public offerings (IPOs) and retail participation have also hit a four-year high, he added.

“Our efforts are continuing into the second half, as we work closely with the MAS and ecosystem partners to sustain this momentum,” he said.

“Looking ahead, our IPO pipeline continues to strengthen with a healthier outlook compared with six months ago.”

SGX said in August that it had 30 companies in the IPO pipeline. Of those, 18 companies have since listed.

Mr Pol de Win, head of global sales and origination at SGX, said the current IPO pipeline is “greater than 30”, but added that the quality and breadth of companies is more important than the number.

He added that potential IPOs are spread evenly across the mainboard and Catalist.

In addition to SGX listings, Mr Loh noted that the global listing board, which will facilitate dual listings on the SGX and Nasdaq, can also help to attract eligible, high-growth companies to tap both Asian and US investor bases.

“We’re seeing more new economy companies engage with us earlier, encouraged by the possibilities that the global listing board can unlock. This is widening the funnel and gradually reshaping the profile of companies looking to list here,” he said.

Companies in the new economy include those relating to the internet or technology.

Mr Loh also said he hopes to get the global listing board up and running by mid-year, and that a pipeline of potential listings is being built up. These include companies that are in Asia but with businesses that could extend into Europe or the US.

Mr de Win said the global listing board is also attracting companies that might otherwise not consider Singapore as a listing destination.

These include companies in technology, healthcare, consumer, digital infrastructure and real estate.

SGX said it has also received interest for its Value Unlock programme, which opened applications on Jan 16 to help Singapore’s listed companies realise their full valuation potential. Around 100 companies have shown interest, about one-sixth of the number of listed firms.

Mr Ng Yao Loong, head of equities at SGX, said companies under the programme will get help with aspects such as capital management issues and the narrative they communicate to investors.

He added that asset managers who have received funds under the EQDP are also looking at some of these companies.

Beyond listed markets, SGX’s foreign exchange, or FX business, has also scaled further, with client acquisition and platform adoption pushing average daily volumes to a new high of US$180 billion, Mr Loh noted.

“Our technology capabilities in this space are also delivering greater value to clients,” he said.

By segment, SGX’s fixed income, currencies and commodities saw net revenue rise by 12.5 per cent to $178.9 million.

This segment accounts for around a quarter of SGX’s total net revenue.

Meanwhile, cash net revenue from SGX’s equities segment jumped 16.2 per cent to $223.9 million, accounting for around 32 per cent of total net revenue.

SGX recorded 15 new equity listings, which raised $3 billion, a marked increase from the five listings raising $19.7 million in the same period a year ago. Secondary equity funds raised were $1.5 billion.

Equities derivatives, however, saw net revenue decline by 5.6 per cent to $167.4 million, while the platform and others segment saw net revenue increase by 6.8 per cent to $125.2 million.

SGX said its expenses guidance for the 2026 financial year remains at a 4 per cent to 6 per cent increase, while capital expenditure guidance for the 2026 financial year remains at $90 million to $95 million.

SGX shares closed down 11 cents, or 0.6 per cent, at $17.64 on Feb 5.

Mr Thilan Wickramasinghe, Maybank’s head of research and regional financials, said: “We think it’s more of a reflection of weaker overall market trading sentiment rather than a read on the results. We think first-half results delivery indicates strengthening momentum into the second half.”