Journey to Wealth
Asean Trading Link catalyst for more inflows
KUALA LUMPUR: The establishment of Asean Trading Link by Asean exchanges this month will be a catalyst for further fund inflows into South-East Asia and increase the region's attractiveness as a bigger capital market bloc, rivalling more established and bigger ones in Hong Kong, China and India.
For a start, the Asean Trading Link, to be launched in the middle of this month, will connect the stock exchanges of Malaysia and Singapore, with Thailand to be connected in August. Future partners include Indonesia, the Phillipines and Vietnam.
'The Asean Trading Link enables the capital markets here to have a common trading platform. This will galvanise forces of the individual markets in South-East Asian to be a more significant sizeable player on the global stage,' MIDF Amanah Asset Management Bhd chief executive officer and chief investment officer Scott Lim told StarBiz.
'The Asean Trading Link set-up is timely and will be a catalyst for further fund inflows because people from outside will now begin to see the markets in the region as a formidable bloc and Asean Exchanges will be able to compete with bigger markets in the wider Asian Pacific region such as China,' he said.
The Asean Trading Link will initially connect the three stock exchanges of Malaysia, Singapore and Thailand at the end of this year and will comprise more than 2,200 companies with a combined market capitalisation of RM4.45 trillion.
The Asean Exchanges, when fully set up, would comprise seven stock exchanges from six different countries with an estimated 3,600 companies and a combined population of 529 million. The market capitalisation of the combined exchanges, at RM6.36 trillion, will be bigger than India's economy.
Lim said Asean Exchanges could be likened to what the European Union did with the establishment of the common currency with the aim of combining economic forces of several countries to be a more significant player on the global stage.
However, he said Asean was nowhere near the stage for a monetary union
Interpacific Securities research head Pong Teng Siew said the benefits of the link included reduced transation costs, with brokerages now having direct access into other markets without having to go through another intermediary.
'This will allow for more seemless trading as brokers and market participants will now be able to access live prices on the Asean Trading Link,' Pong said.
Source: The Star, 5 June 2012
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Discussions
Be the first to like this. Showing 10 of 10 comments
Hi there jc-ooi,
You want to trade and migrated to SGX because of the Country Performance or Companies Performance?
2012-07-11 16:27
Don’t blame the floor, when u don’t know how 2 dance, Just kidding, mate. Give a penny thought to it though, Happy trading & Cheers.
2012-07-11 16:34
sre292, i like your stand! So, Bro JC-ooi, as we refer to sre292 based on her dance analogy: Migrating to SGX: "So you think you can dance?" (Put anger aside Bro, we are brothers).
2012-07-11 16:40
Hi, do you mind to share more about which broker you use and what is the brokerage fee?
2012-07-11 16:42
By the way, just to share with you guys my watchlist on SGX stocks. Feel free to give your thought....
http://sgx.i3investor.com/servlets/pfs/980.jsp
2012-07-11 16:48
Hi Bro Namoyaki Takarajima, i believe SGX is a more friendly stock trading environment for a retail trader like us. If i am not mistaken, they have a lot more retail trader in population percentage compared to malaysia.
If anyone have information, can share the retail trader statistic in Singapore?
2012-07-11 16:58
Bro, 1st subject: about the trading account. If you have a trading account (CDS)/online trading account with any Malaysian local bank, you are able to trade not only SGX, but DJ, FTSE and others. Certain T&C applied. Pls consult your bankers.
2012-07-11 17:04
Hi, i just enquired from HLeBroking. Their rate to trade Singapore stock as follow. I also did some search on OCBC Securities and Standard Charted Bank Singapore. I find SCB really worth for a try .
A) HLeBroking
===========
Brokerage
----------
<SGD40K 0.35%
>SGD40K 0.25%
Minimum SGD30
Foreign Broker Fee
-------------------
SGX access fee: 0.0075%
Clearing Fees: 0.04%
M'sia Contract Stamp
---------------------
0.1%, Max RM200
* Based on my calculation, if i buy Singapore share with HLeBroking that worth SGD10,000. I need to pay SGD44.75 for the transaction.
B) OCBC Securities
================
Brokerage
--------------------
<SGD100K 0.275%
>SGD100K 0.2%
Minimum SGD25
Foreign Broker Fee
-------------------
SGX access fee: 0.0075%
Clearing Fees: 0.04%
*However, if i open an account with Singapore Broker (says OCBC Securities), my cost for SGD10,000 share is SGD29.75 where i save abt SGD15.
C) Standard Charted Bank Singapore (SCB)
======================================
Fee
----
0.2%, no minimum
I also found where Standard Charted Bank Singapore offers 0.2% and no minimum fee. For this, based on my calculation my cost for SGD10,000 share is SGD20.00. If i only trade less than SGD10,000, my cost will be lower because of no minimum fee. I think this suitable for those like to use dollar cost averaging method with petty amount.
The draw back is SCB is not a broker where the share that we bought will not be under individual CDP (Central Depository) acc, all share are traded and kept under SCB's nominee acc.
I think i will give is a try on SCB first.
2012-07-12 13:38
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jc_ooi
Halo...anyone trade in SGX before? As malaysian, what is the most cost effective and convenience way to trade SGX? Any local broker supports SGX share trading? Please advise.
I found it is more attractive to trade in SGX rather than Bursa Malaysia. Singapore is politically more stable and you know Malaysia election is around the corner and most of the time our market is easily "manipulated", really dare not to trade in Malaysia now.
2012-07-11 16:22