New ASEAN trading link kicks off

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The ASEAN trading link, a combined exchange platform between seven ASEAN bourses, is taking shape. Three countries, Singapore, Malaysia and Thailand have already joined the new collaboration of which brokers say it will kick start ample trading activities for the ASEAN stock markets, deemed as a golden area and a tantalising opportunity for investment.

The three markets will jointly offer nearly 3,000 listed companies that together account for some 70 per cent of the total market capitalisation of ASEAN. The large companies in the region are being marketed as ASEAN Stars, highlighting the 30 largest and liquid companies on the respective bourses in Southeast Asia.

Altogether, the ASEAN trading link will combine the stock exchanges of Singapore, Malaysia, Thailand, Indonesia, Philippines and the two Vietnamese exchanges in Hanoi and Ho Chi Minh City.

“The ASEAN trading link means local brokers in the participating countries will be able to trade in other member countries’ stocks,” Charamporn Jotikasthira, President of the Stock Exchange of Thailand (SET), told Inside Investor in an interview.

“In addition, investors don’t have to pay local taxes if you use the ASEAN Link to buy shares from another country. And the new ASEAN Stars index contains the 30 most attractive companies in six Asian countries, altogether 180 stocks. The stocks are based on the market capitalisation and other factors. Investors then can invest throughout ASEAN through this vehicle,” Jotikasthira said.

Indonesia, the Philippines and Vietnam will join the ASEAN Link within two to three years, the respective heads of these bourses announced.

The virtual market of the ASEAN link would rank among the eighth or ninth-largest in the world by market capitalisation, while a roadshow to the US and Europe will be held involving leading regional companies.

According to regional brokers, the ASEAN link will be a strong competition to stock exchanges in Japan, Taiwan, India and China. The brokers also are now getting a strong marketing point of easy access to a rapidly emerging market.

A report by Abu Dhabi-based The National also mentioned that the ASEAN Link could be a role model for combining the GCC stock exchanges.

“It’s very interesting,” one Gulf exchange official who asked not to be identified was quoted by the paper.

“But we’re a few years off that yet,” he said.

“It’s in the interest of the region to consolidate markets, the sooner the better,” Mark McFarland, the chief investment strategist at Emirates NBD, told the paper.

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Reading Time: 2 minutes

Click to enlarge

The ASEAN trading link, a combined exchange platform between seven ASEAN bourses, is taking shape. Three countries, Singapore, Malaysia and Thailand have already joined the new collaboration of which brokers say it will kick start ample trading activities for the ASEAN stock markets, deemed as a golden area and a tantalising opportunity for investment.

Reading Time: 2 minutes

Click to enlarge

The ASEAN trading link, a combined exchange platform between seven ASEAN bourses, is taking shape. Three countries, Singapore, Malaysia and Thailand have already joined the new collaboration of which brokers say it will kick start ample trading activities for the ASEAN stock markets, deemed as a golden area and a tantalising opportunity for investment.

The three markets will jointly offer nearly 3,000 listed companies that together account for some 70 per cent of the total market capitalisation of ASEAN. The large companies in the region are being marketed as ASEAN Stars, highlighting the 30 largest and liquid companies on the respective bourses in Southeast Asia.

Altogether, the ASEAN trading link will combine the stock exchanges of Singapore, Malaysia, Thailand, Indonesia, Philippines and the two Vietnamese exchanges in Hanoi and Ho Chi Minh City.

“The ASEAN trading link means local brokers in the participating countries will be able to trade in other member countries’ stocks,” Charamporn Jotikasthira, President of the Stock Exchange of Thailand (SET), told Inside Investor in an interview.

“In addition, investors don’t have to pay local taxes if you use the ASEAN Link to buy shares from another country. And the new ASEAN Stars index contains the 30 most attractive companies in six Asian countries, altogether 180 stocks. The stocks are based on the market capitalisation and other factors. Investors then can invest throughout ASEAN through this vehicle,” Jotikasthira said.

Indonesia, the Philippines and Vietnam will join the ASEAN Link within two to three years, the respective heads of these bourses announced.

The virtual market of the ASEAN link would rank among the eighth or ninth-largest in the world by market capitalisation, while a roadshow to the US and Europe will be held involving leading regional companies.

According to regional brokers, the ASEAN link will be a strong competition to stock exchanges in Japan, Taiwan, India and China. The brokers also are now getting a strong marketing point of easy access to a rapidly emerging market.

A report by Abu Dhabi-based The National also mentioned that the ASEAN Link could be a role model for combining the GCC stock exchanges.

“It’s very interesting,” one Gulf exchange official who asked not to be identified was quoted by the paper.

“But we’re a few years off that yet,” he said.

“It’s in the interest of the region to consolidate markets, the sooner the better,” Mark McFarland, the chief investment strategist at Emirates NBD, told the paper.

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