Asx Surprises The Market With A Nice Figure
The Age
Thursday February 28, 2002
Sydney
The Australian Stock Exchange yesterday surprised the market with earnings for the six months to December 31 that were better than expected.
Defying an economic downturn and the terrorist attacks of September 11, which affected investor confidence around the world, the ASX posted a record interim net profit of $28.3 million, up 18 per cent on the previous six months and 4 per cent higher than the corresponding period last year.
First-half revenue rose to almost $100 million. Equity trading, clearing and settlement accounted for almost half the total. Revenue from derivatives such as warrants was up from $14 million to $18 million, and income from market data and listings dropped slightly.
ASX chief executive Richard Humphry said he was particularly pleased with the results, given the uncertainty that pervaded the market over the past six months.
``The first half (of fiscal 2002) has been an intensely challenging period for exchanges throughout the world," Mr Humphry said. ``It is very satisfying to produce such strong performance in light of the difficult circumstances."
A fully franked dividend of 19.5 cents was declared, payable on March 26.
Analysts said the result from the APRL share registry joint venture with Perpetual was better than expected.
Credit Suisse First Boston said there was some potential for minor upgrades in the full-year forecast earnings per share, but the share price valuation would stay between $11.20 and $11.50.
``We continue to rate the quality of ASX's business very high and would not be surprised to see it continue to trade at a premium to our value," the broker said.
Mr Humphry said earnings continued to be dominated by equity trading (the average daily trade jumped from 50,900 to 52,846), however, the exchange's focus was on the development of its dual trading alliance with the Singapore Exchange, the roll-out of exchange traded funds, its new futures licence and the ASX Perpetual share registry system.
Mr Humphry said talks were under way with about five exchanges around the world to develop similar trading alliances to that with Singapore.
ASX shares rose 16 cents to $12.61.
© 2002 The Age