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US election helps ASX trump revenue drop

 

Global equity market volatility following Donald Trump's election as US president has helped market operator ASX Limited offset a fall in listing revenue in an otherwise lacklustre first half result.

ASX lifted net profit three per cent to $219.4 million and revenue by 2.2 per cent to $465.2 million in the six months to December 31.

However, listing and issuer services revenue fell 2.1 per cent to $103.3 million.

Chief executive Dominic Stevens said the dip in listing revenue came despite a rise in the number of new listings rising to 86, from 76 in the same period last year.

However revenue from derivatives and other trading services had risen on the back of increased trading activity, partly due to the election of President Trump in November.

"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," Mr Stevens said in a statement.

However, he said margins had fallen back in the new year and margins and volumes were likely to flatten out rather than continue to slide as the year progressed.

"Not much lower than here would be my call," he said.

Mr Stevens said the ASX invested $20.3 million - with another $50 million expected for the full year - on a new futures trading platform, which will go live in March, and new distributed ledger technology, similar to Blockchain, to replace the existing CHESS trade management and clearing system.

However, he said it was still too early in the process comment on whether potential revenue from a new system would help offset falls in other revenue.

ASX shares were down 23 cents, or 0.4 per cent, at $51.77 at 1350 AEDT.

TRUMP HELPS ASX LIFT RESULTS:

* Net profit up 3.0pct to $219.4m

* Revenue up 2.2pct to $465.2m

* Interim dividend up 2.9 cents to $1.02, fully franked.