ASX profits got a boost from the Trump market chaos

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Revenue at the ASX, Australia’s main equities market operator, benefited from the election of Donald Trump as US president.

The ASX today posted a 3% rise in profit after tax to $219.4 million for the six month to December. Revenue grew 2.8% to $386.6 million.

“The result was underpinned by healthy levels of cash market and derivatives trading activity, stimulated in part by market reaction to the US presidential election,” says CEO Dominic Stevens.

However, revenue from capital raisings fell 2.1% to $103.3 million. The number of new listings was up nine to 86, but the total amount of capital raised was down for the six months to December compared to a record half year.

Here’s the detail on listing revenue for the half year:

Source: ASX

Stevens says the ASX continued to invest in infrastructure. Capital expenditure was $20.3 million for the six months, with $50 million expected for the full year.

This includes a new futures trading platform, due to go live next month.

“I am very conscious of the important and impactful role ASX plays and the need for us to listen to the needs of the market.” Stevens says.

He says the ASX has taken on valuable learnings from the equity market outage in September.

“It provided an opportunity to improve engagement with customers and seek their input to further strengthen ASX’s systems, procedures and communications,” he says.

He’s positive about ASX’s prospects.

“We have put in place measures to build the trust and confidence in the ASX brand, and are working hard to better understand our customers and provide the solutions they need,” he says.

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