SINGAPORE - The Singapore Exchange reported a sizeable decline in net profit for its financial first quarter, when the bourse saw lower market activities in both securities and derivatives business.

Net profit for the three months to Sep 30 was S$83.1 million, down 16 per cent from S$99.3 million a year ago, as group revenue pared 13 per cent to S$190.8 million.

A quarter of the revenue came from securities trading and clearing, which pulled in S$47.1 million - down 16 per cent from a year ago.

"Securities daily average traded value was 19 per cent lower at S$0.99 billion. Total traded value fell 17 per cent to S$62.2 billion," the SGX said when announcing its results after market close on Wednesday (Oct 19).

The volume was sluggish despite the eight new equity listings in the quarter, which combined to raise S$647 million and pushed SGX's listing revenue up 3 per cent to S$12.2 million.

Meanwhile, derivatives - which accounted for another 37 per cent of group revenue - declined 22 per cent year on year to S$70.8 million, "as lower SGX FTSE China A50 and Nikkei 225 futures volumes contributed the most to the 24 per cent decline in total volumes to 40.1 million contracts," the SGX added.

SGX chief executive Loh Boon Chye cautioned that market activities may yet stay low in the coming months amid the macro-economic and political uncertainties.

"Participants reacting and adjusting to slowing global economic growth, political uncertainties and implications of Brexit on the European economy could result in a period of relatively subdued trading volumes," Mr Loh said.

He added that the acquisition of the Baltic Exchange is on track to be completed by the end of next month. And despite the weaker performance, SGX's board has recommended an interim dividend of five cents per share, unchanged from a year ago and payable on November 3. SGX shares closed down one cent or 0.14 per cent at S$7.22, ahead of the results announcement.