Aug
01
2011
Today, we start continuous all day trading for our local exchange, SGX.
Trading times will commence at 9am and last all the way till 5pm without a break.
Employed people who do not usually have time to monitor the markets during their working hours might now have something to do during their lunch breaks?
But the poor stock brokers will now need to stay “on standby” during their normal lunch hours.
Permanent link to this article: http://www.martinlee.sg/sgx-all-day-trading-starts-from-today/
Jun
28
2011
According to SGX, investors can expect transparency in price discovery and competitive trading costs of Singapore government bonds (SGS bonds) when they start trading on SGX from 8 July 2011.
Market makers will be available to increase liquidity and make it easier for individual investors to buy and sell SGS bonds.
Without these market makers, the trading of these government bonds would be a challenge.
The liquidity providers which have committed to provide two-way prices for the 19 SGS bonds traded on SGX include DBS, Deutsche Bank, HSBC, OCBC Bank, Standard Chartered Bank, The Royal Bank of Scotland (RBS) and United Overseas Bank Limited.
With the participation of these SGS Primary Dealers, who are specialist intermediaries in the SGS and Singapore Dollar money markets, investors can be assured of competitive and transparent SGS bond prices on SGX.
Investors will be able to check the prices of all SGS bonds traded on SGX from 8 July via “Live Prices” here:
Majority of the retail brokers have also committed to offer competitive brokerage rates on SGS bonds traded on SGX.
In addition, SGX is organizing a series of educational seminars for investors who are interested to know more about how to buy and sell SGS bonds or fixed income securities on the Exchange. Investors may visit the SGX Academy to register for these free seminars.
For comprehensive information on SGS bonds traded on SGX, please visit here:
Permanent link to this article: http://www.martinlee.sg/market-makers-for-singapore-government-bonds/
Jun
15
2011
We all know about the numerous S-Chips scandals that have occurred here.
I discovered that one fairly good method of spotting dubious companies on SGX is to watch out for the queries that SGX raises to the company.
Once in a while, SGX will raise such queries when they find something in the company’s reporting that needs further clarification.
Sometimes, it can be a question like:
We note that as at xxxx date, other current assets has decreased 40% to $5m. Please provide details on the underlying items and reasons for the fluctuations.
Other times, it might be questions on the profit margin or change in receivables.
Often, SGX will not pursue the matter further after the company gives a reply.
While being questioned by SGX does not mean that a company is a dud, it does give you a good opportunity to see whether the company’s management is able to give sensible replies. Usually, the management of the company is able to answer the questions satisfactory.
Once in a while, I have seen the most ridiculous reply which does nothing more than paraphrase the original question. When these kind of answers come out, it might be worthwhile to re-evaluate the company.
If SGX seems to be having questions to every single quarterly reporting by the company, then you should even be more vigilant.
I think there are some hardworking people in SGX who are doing their job. But without any evidence of wrong-doing, this is the best they can do to alert investors.
On the other hand, I think the queries raised by SGX for clarifications regarding trading activity are the “go through the motion” type. Those can be ignored as I will be able to tell you the reply of the company even before they issue it.
And if you are not monitoring the announcements released by the companies you invest in on a daily or weekly basis, then you should really start doing so.
SGX Query 1:
Are you aware of any information not previously announced concerning you (the issuer), your subsidiaries or associated companies which, if known, might explain the trading?
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 known, might explain the trading.
SGX Query 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:
Can you confirm your compliance with the listing rules and, in particular, listing rule 703?
Company’s response to SGX Query 3:
The Company confirms its compliance with the listing rules and, in particular, listing rule 703.
Permanent link to this article: http://www.martinlee.sg/finding-dud-companies-on-sgx/
Jun
14
2011
SGX has selected nineteen Singapore Government Securities (SGS) (more commonly known as Singapore Government Bonds) to be listed on SGX from 8th July 2011.
The maturities of these bonds will be least two years with the furthest maturity at 1st Sep 2030.
The minimum investment in a Singapore government bond is $1,000.
The coupon payments – made every six months – range from 1.125 per cent to 4 per cent for the nineteen bonds.
Since your purchase price is not likely to be at the face value (maturity value), the coupon rates should not be used to evaluate the interest you are getting.
The correct parameter to be used is the yield to maturity (YTM) which you will need to work out before you put in any bids for buying.
A rough indicative yield can be found at this site : SGS Bonds Prices (Secondary market).
The site shows indicative yields based on their indicative offer price.
On SGX, there will be designated market markers to ensure liquidity. It will be interesting to see what is the spread being offered as I suspect the liquidity offered by retail investors will be very little.
The trading fees for stocks will also be applied to government-bond trading and the shares will be held in CDP.
Permanent link to this article: http://www.martinlee.sg/listing-of-singapore-government-bonds-on-sgx/
Jan
19
2011
Starting from 1st March 2011, SGX will cease their daily 90-min lunch break.
This means that trading of SGX listed stocks will be uninterrupted from 9am to 5pm.
More time for punters to trade during their lunch break but brokers will need to continue working throughout lunch time.
SGX will be the overall winner if trading volume (and revenue) increases.
Permanent link to this article: http://www.martinlee.sg/sgx-to-offer-lunch-time-trading/
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