SGX

SGX: The launch of a proposed electronic trading link for Asean stock exchanges has been delayed due to further testing of the technology and lack of investor awareness. The Asean link was supposed to begin with Malaysia and Singapore stock exchanges in Jun with Thailand joining in Aug. In Feb 09, the stock exchanges of Malaysia, Indonesia, S’pore, Thailand, Philippines, and Vietnam signed a preliminary pact in to develop cross-border trading links to cut costs and attract investment. The countries' 7 exchanges have a market cap of over $2tr, with Malaysia, S’pore and Thailand accounting for nearly two-thirds of the value. Trading volumes has shrunk on the SGX to barely $1.05b average daily turnover value. While SGX appears to be actively promoting share trading, MAS has placed very onerous trading restrictions on SIPs, which encompasses foreign shares. Hence, the delay in the launch of the Asean trading link is not expected to have much of an impact as long as the trading curbs on trading of foreign shares by retail investors remain in force. Current street recommendations are mixed with 7 buy, 8 hold and 6 sell ratings on the stock.