(Retops with share price, adds details)
By Nichola Saminather
TORONTO, Aug 5 (Reuters) - TMX Group shares jumped to their highest level in over a year on Thursday after the Canadian exchange operator reported second-quarter profit that beat analysts' expectations late on Wednesday and said the pipeline for capital raisings has not slowed during the summer.
TMX Group also expects a "substantial increase" in long-term bond issuances to fund large government expenditures, and that will help drive the derivatives market linked to these securities, which the company has been adding products to.
The shares surged 5.8% to C$144.19 in morning trading in Toronto, the highest intraday level since July 2020. They are up 13.3% this year, compared with a gain of 3.4% for the Intercontinental Exchange and a 17.1% decline for the London Stock Exchange Group.
Adjusted earnings per share climbed to C$1.90 in the three months through June from C$1.52 a year earlier, the company said in a statement on Wednesday, beating estimates of C$1.72.
Revenue growth, which helped lift earnings, was largely driven by a 44% jump by new listings, with smaller contributions from its equities and fixed income trading and clearing business and data and analytics unit, the company said.
The company expects continued strength in its capital raisings business, as, contrary to expectations, the pipeline for new issuances has not slowed during the summer, the executives said on an analyst call on Thursday.
TMX saw retail trading volumes up 37% in the second quarter versus two years ago, although they were off from first-quarter levels, executives said. Volumes in its retail investor-focused indexes were up between 60% and 80%, the company said. (Reporting by Nichola Saminather; editing by Jonathan Oatis)