ASX chief says clients disappointed by delays as costs soar

ASX stock price fell more than 3 percent on Thursday.

loft house, who began her tenure in Augustsaid CHESS is a critical market infrastructure and the transition must be secure and reliable.

“There is no doubt that our customers, like myself, are very disappointed with the delay. One of the other things I’m very aware of is that not having a new date yet also creates uncertainty and makes it harder for people to plan. So it’s a challenge for our customers. And we’re very, very aware of that,” she said.

“I think the thing to keep in mind here is that we just delivered a really strong result for a company that’s in great shape. And we’re very transparent about the costs and the areas we’re working on.

“I think it’s right that we invest properly in the future. And that’s very much a story of the long-term sustainable value of ASX.”

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UBS analysts said the cost and investment outlook is likely to disappoint the market. They also said the revenue outlook would likely be subject to continued volatility, including an uncertain prospect for IPOs. However, rising rates should support interest income and short-end futures volume.

Morningstar analyst Gareth James said the results were in line with expectations.

“The results themselves were not a big surprise,” he said. “In terms of outlook, I think the big thing is the increase in cost guidance and investment guidance, but that’s been flagged; that’s just a little bit more info on that.

“But if the market has concerns, and if you look at the stock price, it’s down a few percent… it’s about that spending side, considering the delays on the CHESS replacement project.”

However, James said he didn’t think the results would move the needle significantly.

“[The company] maybe going through a period where costs are going up a little faster than before, but I don’t think there’s any fundamental change happening in this business. It’s still the same business today as it was a year or two ago. They have to replace assets as they age, which is perfectly normal.”

Shareholders will receive a dividend of 236.4 cents for the year, a 5.7 percent increase over the prior year.

The Market Recap Newsletter is a summary of the trading day. Get it every afternoon on weekdays.

https://www.smh.com.au/business/banking-and-finance/very-very-conscious-of-that-asx-chief-says-customers-disappointed-by-delays-as-costs-rise-20220817-p5bao9.html?ref=rss&utm_medium=rss&utm_source=rss_business ASX chief says clients disappointed by delays as costs soar

Brian Lowry

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