Summary A sharp market selloff linked to AI disruption fears has wiped out nearly US$1 trillion in software stock value within days, as investors worry that artificial intelligence is starting to replace core business models , not just hype future growth. What’s Driving the Selloff Unlike past AI pullbacks driven by valuation concerns, this rout is fuelled by real-world evidence that AI tools may soon displace entire categories of software jobs and services . The trigger was Anthropic’s launch of an AI legal tool , which reignited fears that AI could rapidly move beyond coding into legal, sales, marketing, and finance functions . Key Market Impacts Nearly US$1 trillion wiped out from software stocks tracked by an iShares ETF in just seven days Software stocks at the epicentre , but selling has spread to hardware, services, lenders, and private equity Over US$17.7bn of US tech loans now trade at distresse...
Singapore Exchange (SGX) marked a record-breaking first half of FY2026, underpinned by strong trading activity and disciplined cost management.
For the six months ended, revenue hit an all-time high of S$736.2 million, rising 7.9% year-on-year, driven mainly by robust performance in Cash Equities and Fixed Income, Currencies and Commodities (FICC). This translated into net profit of S$342.7 million, up 0.8% from a year earlier. On an adjusted basis — excluding non-recurring items — net profit jumped 11.6% to S$357.1 million, reflecting stronger underlying earnings momentum.
Cash Equities stood out as the key growth engine, with revenue climbing 16.2% as average daily trading volumes hit a five-year high. The FICC segment also delivered solid growth, with revenue up 12.5%, supported by buoyant debt capital market activity and increased bond listings. Equity Derivatives revenue dipped 5.6%, though this was offset by strength elsewhere across SGX’s diversified business lines.
Operational discipline remained a highlight. Operating expenses grew just 2.9%, allowing margins to expand and supporting higher EBITDA, which rose 9.6% to S$466.1 million.
Reflecting confidence in its financial position and cash flow outlook, SGX announced a higher interim dividend of 11.0 cents per share, an increase of 2.0 cents from a year earlier.
Looking ahead, management reaffirmed its medium-term revenue growth target of 6%–8%. CEO Loh Boon Chye noted that recent market reforms and SGX’s trusted infrastructure have boosted trading activity and strengthened the IPO pipeline. SGX also maintained its FY2026 cost guidance and reiterated its commitment to progressive dividend growth through FY2028.
Quick Summary
Record revenue: S$736.2m, +7.9% YoY
Net profit: S$342.7m, +0.8% YoY
Adjusted net profit: +11.6%
Cash equities revenue: +16.2%, volumes at 5-year high
Interim dividend: 11.0 cents, +2.0 cents YoY
Cost growth: contained at 2.9%
Key Points
Record half-year revenue highlights SGX’s earnings resilience
Strong cash equities and FICC performance offset derivatives weakness
Dividend increase signals confidence in cash flow and outlook
Medium-term growth target of 6%–8% reaffirmed
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