Tag Archive | "SGX"

SGX strengthens risk management team with new appointments

Singapore Exchange (SGX) has strengthened its Risk Management and Regulatory team with new appointments.

Mr Richard Teng has been appointed as Head of Regulation.

He’s responsible for overseeing Issuer Regulation, Catalist Regulation, Member Supervision, Market Surveillance and Enforcement.

Mr Teng will closely support Ms Yeo Lian Sim, the Chief Regulatory officer, to fulfil and uphold SGX’s regulatory standards.

Mr Kelvin Koh has been appointed Head of Market Surveillance while Ms Annie Ong will be Acting Head of Enforcement.

Ms Agnes Siew has been appointed as Head of Clearing Risk and is responsible for the formulation of risk frameworks for new products and services.

The former Regulatory Policy unit has been expanded to include legal functions related to regulation in order to provide a more holistic perspective in regulatory formulations.

The Regulatory Development & Policy function will be headed by Mr Mohamed Nasser Ismail.

SGX said the changes are effective from July 1 this year, to maintain robust regulation in today’s rapidly changing financial landscape.

Adapted from CNA (By Stella Lee and Jonathan Peeris)

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Singapore Stocks Updates: Ezion Holdings, Hi-P, Keppel Corp., Wilmar

Singapore’s Straits Times Index dropped 0.5 percent to 3,005.28 at the close, the lowest since March 22. Almost six stocks fell for each that rose in the benchmark index of 30 companies. The gauge sank 2.4 percent this week.

Shares on the measure trade at an average 13.8 times estimated earnings, compared with about 15.6 times at the end of 2010, according to data compiled by Bloomberg.

The following shares were among the most active in the market. Stock symbols are in parentheses after the company name.

Oil-rig builders: Keppel Corp. (KEP SP), the world’s biggest supplier of oil platforms, slid 1.9 percent to S$10.44. Smaller rival Sembcorp Marine Ltd. (SMM SP) lost 0.6 percent to S$5.21.

Crude oil futures dropped to the lowest in four months in New York on concern the Greek debt crisis will threaten Europe’s economic recovery, curbing fuel demand.

Ezion Holdings Ltd. (EZI SP), a provider of marine logistics and support services, climbed 1.6 percent to 65.5 Singapore cents. DMG Partners Securities Pte reiterated its “buy” rating on the stock, saying a $73 million contract won by the company’s joint venture with Treatmil Holdings Ltd., a European offshore services company, will boost earnings next year.

Hi-P International Ltd. (HIP SP), a contract manufacturer whose clients include BlackBerry-maker Research in Motion Ltd., dropped 1 percent to S$1 after Canada-based RIM said quarterly revenue may drop for the first time in nine years.

Wilmar International Ltd. (WIL SP), the Singapore-based agribusiness company, climbed 2.1 percent to S$5.44. Amyris Inc., a U.S. biotechnology company, said it will collaborate with Wilmar to develop surfactants, compounds that are used in consumer and industrial products, as part of plans to expand into Asia.

Adapted from Bloomberg & Hearst.

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ASEAN Exchanges a step closer to trading interconnectivity

Four exchanges in ASEAN – Bursa Malaysia (BMB), The Philippine Stock Exchange (PSE), Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET) – today said that they have made progress toward achieving interconnectivity amongst their respective markets as part of the broader ASEAN Exchanges Collaboration.

After its previous announcement of electronic trading platform, ASEAN Exchange today further enforces its trading interconnectivity, for which may pose a threat to HKEx and Tokyo Trading?

There has been a concern in difference between ASEAN that structure and technology of Singapore Exchange (SGX) excels amongst them, which may lead to competition for customers. But now, the enhancement of trading interconnectivity lets it leap.

Today, the four exchanges have appointed SunGard as the technology provider of the business-to-business intra-ASEAN cross-border order routing and trading platform that will electronically connect the markets of participating exchanges and allow investors and broker members to access multiple markets via a single connection. The platform is expected to go “live” by the end of the first quarter of 2012.

Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said: “The ASEAN trading link is an important development in enabling our markets to create greater ASEAN investment mobility amongst intermediaries namely the broker members and information vendors. This forms an integral part of the various initiatives in achieving the overall objective of the ASEAN Exchanges Collaboration to promote the growth of the ASEAN capital market.”

“The ASEAN trading link will facilitate global trades especially for retail investors seeking a bigger exposure in a fast growing ASEAN market,” said Mr Hans B. Sicat, President and CEO of PSE.

Mr Magnus Bocker, CEO of SGX, said, “We are pleased with the development of the ASEAN trading link which will enable investors to easily trade across markets in this region, the combined GDP growth of which is expected to average 6% annually across the ASEAN countries over the next 5 years. We expect this link will drive greater liquidity and investment mobility in ASEAN.”

Mr Charamporn Jotikasthira, President of SET said, “Signing the agreement with SunGard today is another milestone achieved for the ASEAN link project. However, technology alone is not sufficient to make this project a success. The ASEAN Exchanges will work together on marketing initiatives to promote the ASEAN link and the ASEAN asset class. Among others, there will be a networking event to promote cross-border partnerships among ASEAN brokers in Phuket in July.”

Adapted from Quamnet

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Emerging-Market Stocks Slump to Three-Month Low on Rates, Greece

Emerging-market stocks fell to a three-month low as concern deepened that Europe’s debt crisis and rising interest rates in developing nations will curb global economic growth.

The MSCI Emerging Markets Index dropped 1.8 percent to 1,107.43 at 5:30 p.m. in New York, the lowest since March 18. China’s Shanghai Composite Index sank 1.5 percent, while India’s Bombay Stock Exchange Sensitive Index lost 0.8 percent and South Korea’s Kospi dropped 1.9 percent. Brazil’s Bovespa index lost 1.2 percent and Russia’s Micex fell 0.5 percent.

Equities in Poland, the Czech Republic and Hungary sank, while east European currencies weakened as violence erupted in Greece over budget cuts. The Shanghai composite tumbled to the lowest level since September after the Economic Information Daily said in a front-page editorial that an interest-rate increase in China isn’t “far away.” The Sensex extended this year’s drop to 12 percent after India’s central bank raised borrowing costs for the 10th time since the start of 2010.

“Governments are walking a fine line between growth and social obligations,” said Lye Thim Loong, who helps manage about $770 million at Avenue Invest Bhd. in Kuala Lumpur. “Cheap money for funding businesses will eventually dry up.”

The MSCI gauge of emerging markets has fallen 3.8 percent this year, compared with a 0.5 percent slide in the MSCI World Index of developed-nation stocks. Shares in the MSCI emerging index are valued at 10.1 times analysts’ 12-month earnings estimates, the lowest level since March 2009, according to data compiled by Bloomberg.

Industrials and Financials

Industrial and financial stocks were among the biggest decliners on the MSCI emerging gauge today. Hyundai Heavy Industries Co., the world’s biggest shipbuilder, slumped 4.3 percent. China Construction Bank Corp., the world’s second- largest lender by market value, plunged 4.8 percent in Hong Kong.

The Czech PX index retreated 1 percent and Hungary’s benchmark BUX index of shares dropped 0.7 percent. Poland’s zloty weakened 0.9 percent against the euro after the International Monetary Fund said yesterday that Hungary’s government may breach the European Union’s budget-deficit limit next year.

Banco do Brasil SA, Latin America’s biggest bank by assets, lost 2 percent, the most in a month, as traders raised bets for higher borrowing costs and concern mounted that proposed international regulations may subject banks to capital surcharges if they grow any bigger. Miner Vale SA followed metal prices lower and oil company OGX Petroleo e Gas Participacoes SA fell for the fifth day in Brazil.

Yield Spread

The extra yield investors demand to own emerging-market debt over U.S. Treasuries rose five basis points, or 0.05 percentage point, to 321, according to JPMorgan Chase Co.’s EMBI Global Index.

Greek Prime Minister George Papandreou will reshuffle his Cabinet today and seek a confidence vote, battling to control a shrinking majority and pass austerity measures demanded by international lenders. Police used tear gas to break up protests in central Athens last night.

Irish Finance Minister Michael Noonan said yesterday senior bondholders should share in the losses of Anglo Irish Bank Corp. and Irish Nationwide Building Society, reversing a policy of protecting owners of senior securities.

Adapted from Bloomberg

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SGX downplays size after failed ASX exchange deal

Singapore Exchange Ltd (SGXL.SI) CEO Magnus Bocker, whose takeover of market operator ASX Ltd (ASX.AX) was blocked by the Australian government earlier this year, warned on Friday that size alone will not determine which bourses ultimately succeed.

Bockner, speaking at a conference hosted by Sandler O’Neill, also said it was a bit “sad” from Australia’s perspective that the door was closed to the planned cross-border tie-up.

“There is a danger if you think that scale is survival,” he told reporters after his presentation. “Size will never be the single winner in this.”

Bocker was less than enthusiastic about the current round of merger mania in the exchanges space, telling reporters that Singapore is “focusing on organic growth.”

Singapore Exchange Ltd (SGX) in April withdrew its bid for Australia’s ASX Ltd after the government there blocked it, illustrating the hurdles to such cross-border deals for bourses.

This sparked talk that SGX could look to Nasdaq OMX Group Inc (NDAQ.O) or London Stock Exchange Group Plc (LSE.L) as possible partners.

Adapted from Reuters ( By Maria Aspan and Jonathan Spicer )

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SGX to clear Asian FX Forwards

The Singapore Exchange (SGX) is set to become the first bourse in the world to start clearing Asian Foreign Exchange Forwards (FX Forwards) when it makes the service available by September this year.

SGX said the clearing of Asian FX Forwards would include the non-deliverable currencies traded in the region.

These are the Chinese yuan, Indonesian rupiah, Indian rupee, Korean won, Malaysian ringgit, Philippine peso and Taiwanese dollar.

SGX said the initiative is in line with recent global regulations on mandatory clearing for non-deliverable FX forwards and FX options via a central counter party.

This latest over the counter clearing comes after the exchange started clearing of interest rate swaps denominated in Singapore dollars last year.

SGX said it has cleared nearly US$80 billion of interest rate swaps since the launch.

The new clearing service is expected to enhance Singapore’s position as a market for trading of interest rate derivatives and foreign exchange.

So far, 11 SGX clearing members are eligible to clear FX Forwards.

They include Barclays Bank, Citibank, DBS Bank, HSBC, OCBC and UOB among others.

SGX said it expects the membership to grow in the months ahead with membership interest from all banks active in these products.

Meanwhile, SGX has proposed two initiatives to improve market transparency and enhance price discovery through changes in the pre-opening and pre-closing routines.

In a separate announcement, SGX said the first proposal will involve the publication of real-time Indicative Equilibrium Prices (IEP), throughout the pre-open and pre-close phases.

This is for market participants to better assess market demand and supply conditions, and adjust their orders accordingly.

IEP is the price at which orders would be executed if auction matching were to occur at that point. With the proposal, the IEP would form the opening or closing price.

At the moment, investors can only see the aggregate buy and sell quantities at the various bid and offer prices.

SGX also proposed to have a random end to the pre-close phase for a varying duration between four and five minutes. Currently, this is a fixed duration of five minutes after the trading session.

The end of the pre-close phase will be synchronised across all counters.

The varying time period protects the integrity of the closing price against the impact of sudden large entry and withdrawal orders.

The proposals are open to feedback until June 15.

Adapted from CNA (By Millet Enriquez)

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Singapore Exchange: Singapore inflation slows to less than 5% for first time in 2011 Share

Singapore’s inflation slowed to less than 5% for the first time this year in April as a strengthening currency reduced the cost of imported goods.

Consumer prices rose 4.5% last month from a year earlier, the Department of Statistics said in a statement today. That was the slowest pace in five months, according to data compiled by Bloomberg based on previously released information, and compares with the 4.4% median estimate of 11 economists surveyed by Bloomberg News.

Asian central banks from China to Thailand and India have raised interest rates or allowed their currencies to gain to curb price pressures as oil and food costs rise. Singapore’s dollar rose to records after the central bank said April 14 it would allow further appreciation in its third tightening of monetary policy in a year.

“Singapore’s inflationary pressures remain high,” Pay Shuzhen, a Singapore-based economist at Australia & New Zealand Banking Group, said before the report. “With a tightening labor market, high commodity prices and housing costs, inflation will continue to rise.”

Prices rose 0.3% last month from March, without adjusting for seasonal factors, today’s report showed. A core inflation measure that excludes accommodation and private road transport showed prices climbed 2.2% in April from a year earlier, the statistics department said.

Singapore raised its growth forecast for 2011 last week after the island’s economy expanded the most in Southeast Asia in the three months through March. Gross domestic product will increase 5% to 7% this year, the trade ministry said May 19.

POLICY TIGHTENING
The Monetary Authority of Singapore, which uses the exchange rate as its main tool to manage inflation, said last month it will re-center the currency’s band higher.

Singapore’s inflation may have peaked and a stronger currency has helped damp price gains, central bank Managing Director Ravi Menon said May 18. The monetary authority forecasts inflation will average 3% to 4% this year.

The Singapore dollar has gained more than 13% against the U.S. currency in the past year to be the best performer in Asia excluding Japan. It traded at $1.2452 a dollar at 12:54 p.m. local time.

Pressure on consumer prices may increase in the coming months after Singapore Power, the island’s main electricity provider, increased tariffs for the April-to-June quarter by an average 6.5% because of higher oil costs.

Adapted from i3investor & Bloomberg

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Singapore exchange’s McMahon to resign in June

Singapore Mercantile Exchange Sunday said its chief executive, Thomas McMahon, has resigned and will leave his post at the end of June.

The exchange, which commenced operation in August last year, said in a statement McMahon “has decided to move on to pursue his personal interests within the industry, and will do so from Singapore.”

It also said McMahon “will continue to serve SMX until end of June 2011 and will thereafter continue his association with SMX as a member of the Advisory Board of SMX.”

Singapore’s The Sunday Times, citing unnamed sources, said McMahon left the SMX on Friday over “strategy differences” with SMX parent company Mumbai’s Financial Technologies (India) Ltd. (526881.BY). The SMX statement did not elaborate on McMahon’s reasons for resigning but said it is in the process of finding a new CEO.

McMahon, who joined SMX in April 2009, was previously president of the Hong Kong Mercantile Exchange and director of Asia for the New York Mercantile Exchange.

Adapted from MarketWatch (By Sam Holmes)

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