Tag Archive | "SGX"

SGX Should Space Out Introduction of New Rules, Say Observers

SGX should space out introduction of new rules, say observers

The Singapore Exchange (SGX) has announced a slew of plans this week to improve trading processes, liquidity and transparency on the exchange. Some analysts see these as incremental changes to make the exchange more competitive in the long run.

But observers said that SGX should space out its efforts to introduce new rules as market players need some time to adopt the changes.

Analysts do not expect trading volumes to rise significantly once the proposed changes to cut bid size take effect on July 4. So far, industry reaction remains mixed as the new measures are expected to impact traders and market participants in varying degrees.

Under the new rule, investors can now bid for stocks that cost less than 20 Singapore cents each for as little as 0.1 cent. And stocks that cost above S$10 will have a minimum bid size of 1 cent – down from 2 cents currently.

Albert Fong, President of the Society of Remisiers (Singapore), said: “The pro are the people who are benefiting with the facilitating of arbitraging and hedging activities. Those who are feeling concerned are those who feel that there’s a loss of contra-trading opportunities, which may translate to lower trading volume in that particular segment.

“At the same time the reservation of the tight bids will allow them little opportunities, minimise their opportunities to make more profit strategies.”

Analysts said a lower bid size may also help penny stocks gain more exposure and invite hedge funds to come into the market.

Industry players generally welcomed SGX’s efforts but some are cautious on the pace of new measures being introduced on the bourse. For one, SGX’s proposal to change voting procedures at general meetings is viewed by some observers as unnecessary and costly.

The Singapore Exchange (SGX) is seeking public feedback on proposals to require listed companies to hold general meetings in Singapore as well as conduct their voting by polls instead of show of hands.

Investor Vincent Chen who has attended a number of general meetings, said: “The only thing you gain from this – at considerable expense and inconvenience – is how many voted for or against. In most cases, you will have 90 per cent who will vote for and very few against because the major shareholders will be voting for the resolutions.”

Mr Chen said that while many big companies have adopted electronic polling, voting by hands has offered an efficient process where shareholders and management can easily pass resolutions with no need for third party scrutiny.

Quite often at general meetings for smaller companies, there is a higher level of participation from retail shareholders because the bigger investment funds would normally have access to management, he said.

Liu Jinshu, an Investment Analyst with SIAS Research, said: “If the SGX were to make changes too fast, it might not actually be a good thing. Firstly, if there are too many changes for investors to adapt to, it might put them off.

“Secondly, putting too many changes together is harder for SGX to observe the effects of these changes and see how successful (they are) and how they can improve upon them.”

Still, some market observers believe the SGX is on the right track to encourage more investors to trade.

Robson Lee, a Partner with Shook Lin & Bok LLP, said: “With the proposed publication of the real time indicative equilibrium prices, you would help investors to be able to make better judgment as to what is the indicative price at which trades will take place. Therefore, you have a better sense of demand and supply and you can price your trades accordingly.”

Some analysts said randomising the end of the pre-close phase for a varying duration between four to five minutes may also lessen major spikes in stock prices due to large volumes of shares being traded in the last minutes of market close.

For now, analysts say many traders are likely to maintain a wait-and-see approach.

Adapted from CNA (By: Millet Enriquez)

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Move to improve SGX market transparency

Move to improve SGX market transparency

THE Singapore Exchange (SGX) has launched a public consultation on proposed tweaks to the pre-opening and pre-closing routines of the securities market.

SGX said yesterday that the changes would improve market transparency. It is first proposing to publish the indicative equilibrium price (IEP) in real time throughout the pre-open and pre-close phases.

SGX’s pre-open period runs from 8.30am to 8.59am, while its pre-close session is from 5.01pm to 5.05pm.

Created in 2000, these pre-open and pre-close sessions are used to electronically match orders that were not executed during trading hours. They were introduced to get rid of index-rigging and price-fixing.

During these times, market players can currently see the total buy and sell quantities, but at various bid and offer prices.

SGX is now proposing to publish IEP – the price at which orders would be executed if auction matching were to occur at that point. This price would then form the opening or closing price instead. IEP is used in markets such as Hong Kong as well.

‘With this information, market participants are better able to assess market demand and supply conditions, and adjust their orders accordingly,’ SGX said yesterday.

In its second proposal, SGX has asked for a ‘random end’ to the pre-close phase of the closing routine. Currently, the pre-close phase is fixed at five minutes after the trading session. SGX now wants to randomise the end of the pre-close phase for a varying duration between four and five minutes.

The end of the pre-close phase will be synchronised across all counters. The varying time period aims to protect the integrity of the closing price against the impact of sudden large entry and withdrawal orders, SGX said.

‘Together with other initiatives including a reduction in the minimum bid size of securities from July 4, 2011, these new improvements are expected to enhance the market.’

Adapted from The Business Times (By Jamie Lee)

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SGX bids to boost market transparency

SGX bids to boost market transparency

Singapore Exchange (“SGX”) is consulting the public on two proposed improvements to the pre-opening and pre-closing routines of the securities market.

The proposals will enhance the price discovery process and strengthen market transparency. Together with other initiatives including a reduction in the minimum bid size of securities from 4 July 2011, these new improvements are expected to enhance the market.

(i) Publication of real-time Indicative Equilibrium Prices (“IEP”)

SGX proposes to publish real-time IEP throughout the pre-open and pre-close phases. The price information currently available to market participants during the pre-open and pre-close market phases comprises the aggregate buy and sell quantities at the various bid and offer prices. IEP is the price at which orders would be executed if auction matching were to occur at that point. The IEP would then form the opening or closing price. The publication of IEP is intended to provide greater market transparency. With this information, market participants are better able to assess market demand and supply conditions and adjust their orders accordingly.

(ii) Random End to the pre-close phase of the closing routine

The pre-close phase of the closing routine is presently a fixed duration of five minutes after the trading session. SGX proposes to randomise the end of the pre-close phase for a varying duration between four to five minutes. 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.

Adapted from Singapore Stock Exchange & Finextra

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REPLY TO QUERIES REGARDING TRADING ACTIVITY

REPLY TO QUERIES REGARDING TRADING ACTIVITY

The Board of Directors of Ramba Energy Limited (“the Company”) would like to respond to the following queries raised by the Singapore Exchange Securities Trading Limited (“SGX-ST”) dated 1 June 2011 (“SGX Query”) as follows:

SGX Query 1: Question 1: Are your aware of any information not previously announced concerning you (the issuer), your subsidiaries or associated companies which, if know, might
explain the trading? If yes, the information must be announced immediately.

Company’s response to SGX Query 1: The Board is not aware of any information not previously announced concerning the Company, its subsidiaries or associated companies which, if know, might explain the trading today.

SGX Query 2: Question 2: Are you aware of any other possible explanation for the trading?

Company’s response to SGX Query 2: The Board is not aware of any other possible explanation for the trading.

SGX Query 3: Question 3: Can you confirm your compliance with the listing rules and, in particular, listing rule 703?

Company’s response to SGX Query 3: The Board confirms that the Company is in compliance with the listing rules of SGXST and in particular Listing Rule 703.

Adapted from Ramba Energy & info.sgx

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SGX seeks feedback on amendments to listing rules

SINGAPORE : The Singapore Exchange (SGX) is seeking public feedback on amendments to listing rules which aim at enhancing shareholder participation at general meetings.

Among the proposed amendments include making the holding of general meetings by all primary-listed companies mandatory.

This includes companies based outside of Singapore, unless they are prohibited to hold general meetings in Singapore by laws and regulations in the jurisdiction of their incorporation.

If companies are forbidden to hold general meetings in Singapore, SGX proposes that these companies demonstrate to the exchange their restrictions in doing so.

SGX said such companies should provide an alternative means, such as a video conference or a webcast, for shareholders to participate in the general meetings.

These companies should also hold shareholder meetings in Singapore at least once a year.

The second proposed amendment requires all listed companies to conduct their voting by poll, instead of by show of hands, at general meetings.

SGX said voting by poll allows higher levels of shareholder participation, as institutional and overseas investors can participate actively through their proxies.

The bourse noted that most companies are already conducting voting by poll.

SGX added that it recognises that the polling system may incur additional costs and labour for companies which have not adopted it.

These companies will be given up to 1 January 2013 if they are required to report their finances quarterly, or 1 January 2014 if they are required to report their finances half-yearly, to adopt a polling system for their general meetings.

The third proposed amendment requires all listed companies to announce the voting results for or against a resolution after their general meetings.

The poll results should include the total number of shares eligible to vote at each resolution at the general meeting; the total number of shares voted for and against each resolution and its representation as a percentage; the total number of proxy votes received; and the breakdown of the proxy votes received.

The identity of the scrutineer appointed for the vote-taking is also required to be announced.

The amendment also requires parties who have stated their voting intentions or abstentions be declared at the general meeting.

The consultation paper is available for public feedback until June 17 on the SGX website.

SGX said the amendments would enhance shareholder engagements, encourage participation at general meetings and increase disclosure of voting outcomes.

The relationship between shareholders and listed companies are essential to good corporate governance, it added.

Market watchers said these amendments might mean positive changes to shareholder participation in general meetings.

“Voting by show of hand is already obsolete in today’s day and age. If one hand represents one vote, it doesn’t recognise the actual voting rights of each shareholders,” said Associate Professor Mak Yuen Teen, co-director of the Corporate Governance and Financial Reporting Centre at the NUS Business School.

“Showing the breakdown of votes is important for shareholders, as they will know how much support there is for each resolution. The onus is on companies to make sure all the votes are counted,” he added.

Adapted from CNA ( By Jo-ann Huang)

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Singapore Exchange to offer trading in more metals contracts

Singapore Exchange to offer trading in more metals contracts

Singapore Exchange SGXl.SI said on Thursday it is planning to add another three contracts to the set of metal products it offers in partnership with the London Metal Exchange (LME).

The bourse has already been offering mini-contracts in copper, aluminium and zinc futures in conjunction with the LME since February this year.

“We see quite a careful take-up on those kind of products and we hope to add another three metal contracts in the not too distant future,” said Magnus Bocker, the exchange’s chief executive, although he didn’t specify which metals they would be.

He was speaking at a ceremony welcoming Swedish bank SEB (SEBa.ST) as a new trading and clearing member of the exchange.

Bocker added that SGX was planning to begin offering central clearing for FX forwards in “the next few months”.

Several market players have said the FX forward clearing could be launched as early as June, although Bocker said the exchange is waiting to ensure its interest rate swap clearing business is running smoothly before moving to new products.

“You need to get through the interest rate swaps, have them cleared, everyone familiar with it and all the technology up and running before we move on to the next product,” he said.

SGX is hoping to take advantage of the global regulatory move to push as many over-the-counter derivatives through central clearing as possible.

It became the first Asian exchange to offer clearing of over-the-counter derivatives in November last year, and says it has cleared almost S$100 billion ($80.1 billion) worth of Singapore dollar interest rate swaps since that launch. ($1 = 1.248 Singapore Dollars).

Adapted from Reuters

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Singapore Stocks-Cautious start seen; property stocks in focus

Singapore Stocks-Cautious start seen; property stocks in focus

Singapore shares are likely to
make a cautious start on Wednesday as firmer commodity prices
are offset by worries over the U.S. economic outlook and euro
zone debt concerns.
Property stocks such as City Developments may be
in focus on news that foreigners bought more homes in the first
quarter of 2011, a development that may prompt further
government measures to cool the housing market.
Foreigners snapped up 29 percent of all private homes sold
in Singapore in the first quarter compared with 26 percent in
the preceding quarter according to property consultants DTZ,
local media reported on Wednesday.

———————-MARKET SNAPSHOT @ 2344 GMT ————
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1316.28 -0.08% -1.090
USD/JPY 82.12 0.18% 0.150
10-YR US TSY YLD 3.1158 — 0.000
SPOT GOLD 1524.05 -0.11% -1.700
US CRUDE CLc1 99.19 -0.40% -0.400
DOW JONES 12356.21 -0.20% -25.05
ASIA ADRS 133.93 0.65% 0.87
————————————————————-

> Wall St pulls back slightly on growth concerns
> U.S. bonds gain slightly after strong 2-year auction
> Euro rises vs dollar but Greece saps momentum
> Gold stays near 3-week high on euro debt angst
> Oil rises 2 pct as Goldman boosts price forecast

Stocks and factors to watch:
— CAPITAMALLS ASIA
Shopping mall owner CapitaMalls Asia , a unit of
Singapore property developer CapitaLand , said it is
converting its China development fund to an income fund and
increasing the size by 50 percent to $900
million.[ID:nSNZ7sCXgZ]

— STARHUB
StarHub, Singapore’s second-biggest telecom firm, is
unlikely to follow larger rival Singapore Telecommunications
with a special dividend this year, its chief executive said on
Tuesday. [ID:nLDE74N1G7]

— FRASER AND NEAVE
Food, beverage and property conglomerate Fraser and Neave
said on Tuesday its hospitality arm Frasers Hospitality had
opened a residential building in China’s Suzhou Industrial Park.
[ID:nSNZ2Ld9xm]

— UNITED ENVIROTECH
Singapore-listed United Envirotech said on Tuesday its net
profit for the year ended March 31, 2011, rose 7.8 percent to
S$16 million ($12.8 million) from a year ago, helped by
contributions from its engineering and water treatment business.

— BENG KUANG MARINE
Beng Kuang Marine, which provides services to the marine
industry, said on Tuesday it had won contracts worth a total of
S$28.8 million to build four crane barges. [ID:nSNZDmnJL]

Singapore’s benchmark Straits Times Index edged
0.08 percent higher on Tuesday to 3,113.09 points.
The Dow Jones industrial average lost 0.20 percent
to finish at 12,356.21. The Standard & Poor’s 500 Index
retreated 0.08 percent to 1,316.28. The Nasdaq Composite Index
fell 0.46 percent to 2,746.16.

Adapted from Reuters

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Singapore stock market report (May 2011)

Hour Glass Delivers Record Profit On Higher Margins
Luxury watch group The Hour Glass delivered a record profit for the full year ended 31 Mar-11, with the bottom line jumping 29.1% from $32.8m to $42.4m. This in turn brings earnings per share to 18.1 cents, up from the previously 14.1 cents. The improvement was underpinned by the higher revenue, which climbed 7% from $483.7m to $517.6m, attributed to the expansion of its multi-brand retail network. For the year, gross margins grew from 20.1% to 22.4%, due to the implementation of various marketing programmes as well as more positive trading conditions. A first and final dividend of five cents has been recommended.

Significance: According to its website, The Hour Glass has boutiques in Australia, Hong Kong, Japan, Malaysia, Singapore and Thailand. Demand for timepieces in the region, with the exception of Japan, is likely to be sustained. The company however cautions that inflationary pressures could drive up operating costs, ‘especially those related to personnel and rental’.

Valuetronics’ Full Year Profit More Than Doubles
Valuetronics Holdings (Valuetronics), an integrated electronics manufacturing service provider, reported a delightful set of full year results for the period ending 31 Mar-11. Revenue spiked substantially by 73.4% from HK$1.1b to HK$2b, leading profit to more than double from HK$58.8m to HK$121m. Improvement was seen in revenue contribution of both original equipment manufacturer (OEM) and original design manufacturer (ODM) business segments, which were boosted by increased sales orders and launch of new products from major customers. The company has proposed a first and final dividend of 14 HK cents per share for the year.

Significance: Valuetronics’ licensing business segment, which began in 1Q11, had contributed a revenue of HK$33.4m for the year. Its first product, the air purifier, was launched in Apr-10 and had subsequently secured rights for additional home comfort appliances. The company expects the enlarged product portfolio to contribute positively to its revenue.

United Envirotech’s FY11 Profit Climbs 7.8%
United Envirotech posted a profit increase of 7.8% from $14.9m to $16m for the financial year ended 31 Mar-11. The top line rose 12.8% from $69m to $78m, supported by growth in the engineering and treatment segments. Revenue from the engineering business grew 9.2% to $62m, however its segmental profit contribution shrank $5.5m or 38.7% to $8.7m due to changes in the contract mix. Revenue from the treatment business jumped 29.9% to $16m underpinned by the increased treatment capacity at the current plants, its profit contribution continued the uptrend by rising $1.1m or 14.7%. For the year, a final dividend of 0.30 cents has been declared.

Significance: The recently endorsed 12th 5-year plan by the PRC government has incorporated clear directive to increase investment in environment and water-related projects. United Envirotech believes its advanced membrane technologies have a competitive edge in treating wastewater and foresees growing demand for its services.

Adapted from Stock Trade Review

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SGX’s A$7.3 billion bid for ASX falters on government, regulator

SGX’s A$7.3 billion bid for ASX falters on government, regulator
A A$7.3 billion ($7.1 billion) bid by the Singapore Exchange (SGXL.SI) to take over its Australian rival is faltering as the Australian government, the regulator and a key opposition party are all set to reject it, the Sydney Morning Herald said.

The Foreign Investment Review Board was unlikely to support SGX’s cash and share bid for the Australian Securities Exchange (ASX.AX) but even if it did, the Treasury, whose approval is also necessary, would stop the deal, the paper quoted a senior government source as saying on Saturday.

“If (the FIRB) doesn’t kill it, we will,” the source told the paper.

In addition, the Nationals, a key party in the conservative opposition Coalition, would “ferociously” oppose the deal, Barnaby Joyce, a top party official, told the paper.

The deal, first announced in October, has already been under pressure from Australian politicians — whose approval is necessary to lift a 15 percent shareholder cap — as it was seen as ceding control over a key national institution and a de-facto monopoly.

The SGX last month improved the terms of its offer but it is still far from a merger of equals, as urged by several key political leaders, and SGX Chief Executive Magnus Bocker earlier this month told Reuters there would be no more incentives to win control of ASX.

Another argument by opponents has been that moving effective control of the bourse to Singapore would reduce Sydney’s standing as a regional financial hub.

The Treasury has repeatedly declined to comment, saying it will not form an opinion on the deal until the FIRB has made its recommendation. The SGX launched its application with the FIRB earlier this month and the regulator has 30 days to make an initial ruling.

The Liberals, the biggest party in the opposition coalition, have said the government has yet to prove the deal would provide net benefit to Australia, therefore it had reservations.

Exchanges around the world are involved in merger talks to build scale and reduce costs amid increased competition from dark pools and other alternative electronic trading platforms.

However, some major cross-border deals, such as the Deutsche Boerse’s (DB1Gn.DE) plan to acquire NYSE Euronext (NYX.N), and London Stock Exchange’s (LSE.L) plan to combine with Canada’s TMX Group (X.TO), have run into some nationalistic opposition.

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SGX to offer continuous all-day trading by 2nd quarter of 2011

SGX to offer continuous all-day trading by 2nd quarter of 2011
18 February 2011 – Singapore Exchange (SGX) today said it is seeking regulatory approval to
offer non-stop trading from 9.00am to 5.00pm for its securities market by the second quarter of
the year, instead of 1 March. This follows further consultation with market participants.
The later start date will help assure complete readiness of all participants.
The start of continuous trading of securities will bring Singapore in line with developed
international markets at a time of increasing globalisation and competition. Trading hours in
Singapore will overlap more with those of key centres in Tokyo, China and India, thereby
increasing opportunities for investors participating in various markets.
A non-stop trading session also will remove the additional risks investors face when they are
unable to act due to a gap in the trading day.

adapted from news release by SGX

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Symbol Bid Ask Spread
EURUSD 1.18160 1.18180 2
GBPUSD 1.31960 1.31990 3
USDCAD 1.24590 1.24620 3
USDJPY 112.980 113.000 2
USDCHF 0.97940 0.97970 3
AUDUSD 0.78610 0.78640 3
NZDUSD 0.70420 0.70470 5
EURGBP 0.89530 0.89560 3
EURCHF 1.15730 1.15760 3
EURJPY 133.500 133.530 3
AUDJPY 88.820 88.870 5
GBPJPY 149.080 149.140 6
XAUUSD 1280.66 1281.06 40
XAGUSD 16.956 17.006 5