SGX and Bursa Malaysia connect on ASEAN Exchanges

The Singapore Exchange (SGX) and Bursa Malaysia trading link went ‘live’ on Tuesday.

The trading platform is an initiative by the ASEAN Exchanges, which is a collaboration of seven ASEAN stock exchanges, to boost regional capital markets and attract more investors to these bourses.

The response from investors was a little lacklustre on first day of trading.

Trade volumes between both exchanges have not been revealed but brokers Channel NewsAsia spoke to said since only two exchanges have been connected so far and volumes are likely to be low.

But trading volumes may increase in October when the Stock Exchange of Thailand comes onboard.

Including Thailand, the combined average daily value of stocks traded in the three exchanges this year is around S$2.5 billion.

This accounts for about 67 per cent of the total market capitalisation of the ASEAN Exchanges group, which also includes Indonesia, the Philippines and Vietnam’s two bourses.

To date, six brokers from Singapore have joined the ASEAN Trading Link.

In a statement on Tuesday, the ASEAN Exchanges named six local brokers from Singapore who have opted into this new trading link. They are CIMB Securities, Phillips Securities Pte Ltd, UOB Kay Hian Securities Pte Ltd, DMG & Partners Securities Pte Ltd, Lim & Tan Securities Pte Ltd and Maybank Kim Eng Securitites Pte Ltd.

In total, 31 brokers from across Malaysia, Singapore and Thailand have come onboard according to the ASEAN Exchanges.

With the new trading link, investors can also gain easy access to multiple ASEAN markets from their own country.