By Rajasik Mukherjee and Nikita Maria Jino
Aug 13 (Reuters) - Australian stock exchange operator ASX posted a higher annual underlying profit on Thursday, helped by robust trading activity in volatile global markets, sending its shares to their strongest session since March 2020.
The stronger earnings come as ASX works to rebuild trust after months of intense regulatory scrutiny over a string of operational failures, and a downgrade by ratings agency S&P.
Regulators have questioned its management of
critical market infrastructure, prompting increased investment in technology upgrades and system resilience.
The bourse operator said global market volatility bolstered trading activity and demand for post-trade services during the year ended June 30. That helped its key markets division log an 18.6% rise in revenue, with futures and options volumes up 14.4%.
"The second half of FY26 saw exceptionally active and volatile markets, driven primarily by global events," ASX said in a statement.
"ASX recorded its highest month of futures trading volume ever and the second-largest equities trading day ever by number of executed trades."
Annual underlying net profit after tax rose 5.2% to A$536.4 million. The company declared a final dividend of 104.7 Australian cents per share.
Total expenses rose 21.1%, driven by increased spending on technology modernisation, additional technology capabilities, and costs associated with a corporate regulator inquiry, but were within the guidance range of 20%-23%.
The bourse operator spent heavily on its Clearing House Electronic Subregister System, or CHESS, clearing platform despite several outages and a scrapped overhaul.
Shares of ASX closed 9% higher after rising as much as 13.3% to A$62.9 in their biggest intraday percentage jump since late October 2010.
"ASX is moving beyond the period of intense regulatory scrutiny, with a new CEO starting next month and the capital and technology investment in place to execute the turnaround strategy," said Greg Smith, investment specialist at Generate KiwiSaver.
ASX has tapped Euronext's Anthony Attia as its next chief executive, opting for an international appointment over an internal candidate to repair its damaged reputation.
($1 = 1.4158 Australian dollars)
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu)
