Hong Kong Exchanges First-Quarter Profit Little Changed on Costs
Hong Kong Exchanges & Clearing Ltd., the world’s No. 2 bourse operator by market value, said first- quarter profit was little changed as higher costs from owning the London Metal Exchange offset gains.
Net income rose 1 percent to HK$1.16 billion ($149 million), or HK$1.01 a share, for the three months ended March 31, from HK$1.15 billion, or HK$1.06 a share, a year earlier, the company said today in a statement. That compares with the HK$1.1 billion mean estimate of six analysts in a Bloomberg News survey.
Equity trading on the Hong Kong bourse, which include China’s biggest banks and energy producers, has trailed global peers as Chinese economic data indicate growth may be slowing. Hong Kong Exchanges completed its $2.2 billion acquisition of the world’s biggest metal exchange in December as it seeks to diversify revenue sources.
“The most important point the market is looking at is the future development of the LME,” Kenny Tang, general manager of AMTD Financial Planning Ltd., who has a buy recommendation on the stock, said before the statement. “The Hong Kong market still has the ability to launch large listings, and fund flow into Hong Kong remains quite strong. We are expecting some improvements in turnover for the second half.”
Sales rose 19 percent in the first three months to HK$2.22 billion in the quarter, the company said. Operating expenses surged 38 percent, the bourse said.
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