
Exchange operator ASX posts rise in new listings and capital growth, shares jump
Feb 13 (Reuters) - Australian exchange operator ASX (ASX.AX), opens new tab 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.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
17 minutes ago
- Reuters
Moelis CEO-designate joins Wall Street in signaling dealmaking rebound after tariff pause
June 10 (Reuters) - Moelis' (MC.N), opens new tab incoming CEO Navid Mahmoodzadegan told investors on Tuesday that he is optimistic about the dealmaking environment, as confidence returns following a pause in April triggered by U.S. tariff threats. "I'm optimistic. It definitely feels better and better each day ... The announcement in April, I think set us back a little bit in terms of the M&A environment," he said at the Morgan Stanley U.S. Financials Conference. Investor sentiment soured and stock markets slid after U.S. President Donald Trump's "Liberation Day" tariff threats, stalling risk appetite and slowing deal activity. Appetite for deals has since returned, with market participants and bankers once again seeing an opening for initial public offerings and signs of a pickup in M&A activity. "Everywhere I go, people want to transact. They want to lean into transactions, whether it's companies or private equity firms or capital providers," Mahmoodzadegan said. "We're seeing our clients push us to launch transactions, even if the environment isn't crystal clear." Earlier this week, Moelis said Ken Moelis would step down as CEO of the investment bank and hand the reins to Mahmoodzadegan, its co-founder and co-president. The succession marks a major step for the bank, which has been led solely by Ken Moelis since its founding in 2007. While succession at companies closely tied to founding CEOs can be challenging due to their outsized personal influence, Mahmoodzadegan said it was part of the "natural evolution of the firm." "I think Ken felt that even though he's fully active and will continue to be fully active with clients going forward ... this was a great opportunity at a great time to give more responsibility, not just to me, but to the next generation of bankers," Mahmoodzadegan added. The bank's deal pipeline currently is up from April and is as high as "it's ever been at the firm, or close to it," the CEO-designate said. The comments echo Morgan Stanley (MS.N), opens new tab CEO Ted Pick's expectation of a strong end of the quarter for the bank as dealmaking and the calendar for equity capital markets are picking up. Last week, top executives at the New York Stock Exchange (ICE.N), opens new tab and Nasdaq (NDAQ.O), opens new tab also said the IPO market is gaining momentum despite the Trump administration's rapidly shifting tariff policy, adding to the industry's optimism about a meaningful recovery.


Reuters
an hour ago
- Reuters
Brazil's fiscal package to include higher tax on interest on equity
BRASILIA, June 10 (Reuters) - Brazil's Finance Minister Fernando Haddad said on Tuesday that the government's new fiscal package includes an increase in the income tax rate levied on so-called interest on equity (JCP) payments to 20% from 15%. JCP is a form of shareholder remuneration that allows companies to deduct such payments from their corporate tax base. Speaking to reporters, Haddad said that the decision to include the measure - previously proposed by the government but not voted on by Congress - came at the request of lawmakers. Haddad also confirmed that the fiscal package includes the unification of income tax rates on financial investments at 17.5%, replacing the current sliding scale of 15% to 22.5%, which varies according to the investment's holding period. The new rate would apply to all investments, including stocks and bonds, except those currently exempt from income levy, which would begin to be taxed at 5%, as Haddad had already disclosed on Sunday. The minister, who spoke after returning from a meeting with President Luiz Inacio Lula da Silva, said the additional revenue generated by the package would be used primarily to revise the previously imposed financial operation tax (IOF) hike on forfait operations. The IOF decree, which had been introduced to boost public revenues and also raised the tax on private pension funds and some credit and foreign exchange transactions, triggered strong pushback from both Congress and market players, prompting the government to seek an alternative path as lawmakers threatened to overturn the measure. Haddad defended the new fiscal measures on Tuesday, arguing that they are likely to support the strengthening of the Brazilian currency, pave the way for interest rate cuts, and help ensure compliance with this year's and 2026 fiscal targets.


Reuters
5 hours ago
- Reuters
South African rand shrugs off weak manufacturing data
JOHANNESBURG, June 10 (Reuters) - The South African rand strengthened on Tuesday despite a sharp contraction in local manufacturing output, as investors waited for more clarity on U.S.-China trade talks. At 1415 GMT, the rand traded at 17.69 against the dollar , about 0.2% stronger than Monday's closing level. South Africa's manufacturing output (ZAMAN=ECI), opens new tab fell 6.3% year on year in April, the sixth consecutive monthly decline, statistics agency data showed on Tuesday. Analysts polled by Reuters had expected a drop of 3.9%. Weakness in the manufacturing sector was one factor behind the first quarter's sluggish growth of just 0.1%(ZAGDPN=ECI), opens new tab, offsetting a strong performance by agriculture. The rand was also supported on Tuesday by a stronger global gold price and by a weaker U.S. dollar . The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab was last up 0.6%. The benchmark 2035 government bond was stronger, as the yield fell 4 basis points to 10.095%.