Exchange operator ASX posts rise in new listings and capital growth, shares jump

Sigma Healthcare

13/02/2025 05:45

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      ASX operating revenue reaches record high in first half
    

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      Underlying net profit rises 10.1% to A$253.7 million
    

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      Shares rise as much as 9.2% in trading, close 5% higher
    

  
    By Rishav Chatterjee
       Feb 13 (Reuters) - Australian exchange operator ASX
 ASX.AX  said on Thursday it had recorded higher new listings
and total quoted capital in the first half and flagged the
momentum was continuing into the second half, leading shares to
close 5% higher.  
    ASX said its operating revenue reached a record high for the
six months ended December 31, reflecting a lift in demand for
derivatives market data, rising listing fees and higher trading
in the cash market.
    ASX shares surged as much as 9.2% during trading, the
biggest intraday rise in nearly five years.
    It reported a 10.1% rise in first-half underlying net profit
to A$253.7 million ($159.70 million), beating consensus
estimates by 2.8% and said it would pay an interim dividend of
A$1.112 a share. 
    ASX said increased trading in the Australian market was on
the back of changing expectations for global interest rates that
coupled with major geopolitical disturbances drove volatility in
markets.
    Initial public offerings also increased in the Australian
market, rising to $2.01 billion of net proceeds in 2024, the
highest level since 2021, according to LSEG data.
    ASX has faced headwinds from regulatory scrutiny due to its
inability so far to replace its CHESS clearing and settlement
system, after an outage in December.
    The exchange operator said it was planning the first
industry test environment for the first release of the new
CHESS’s clearing services to open later this month.
    Costs associated with the failed CHESS replacement have been
one of the major investor concerns about the company. ASX
reported total expenses of A$220.3 million in the first half,
which was flat compared to the prior year.
    It also reaffirmed its expense growth guidance of between 6%
and 9% for the current financial year. 
    "The exchange showed the first signs of stabilization in
cost growth, an issue since the botched replacement project for
its clearing system," said Roy Van Keulen, an analyst at
Morningstar.
($1 = 1.5886 Australian dollars)

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ASX expenses growth in first half    https://reut.rs/3CX8ggE
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 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Jamie
Freed)
 ((Rishav.Chatterjee@thomsonreuters.com;))