PSE defers participation in Asean linkage

MANILA, Philippines - The Philippine Stock Exchange (PSE) is deferring its participation in the Association of Southeast Asian Nations (ASEAN) Exchange Linkage, which aims to develop a cross trading arrangement that will link the region’s trading systems next year.

The ASEAN Link, scheduled to be launched in 2012, aims to create a common trading venue initially among four stock markets – in Malaysia, Singapore, Thailand and the Philippines. The linkage was seen to speed up ASEAN integration by enhancing access and liquidity in capital markets across the region.

“The PSE has decided to temporarily postpone its original plan to be included in the ASEAN Link while it undertakes efforts to generate further interest and support for the project from its local brokers and the investing public,” the exchange said.

The PSE added it would rejoin the ASEAN Link at a future date.

The first stage of the proposed roll-out plan of the ASEAN Link will involve the connectivity of the Singapore Exchange and Bursa Malaysia in June 2012. The Stock Exchange of Thailand will be added in August 2012 after its new trading engine goes live.

The PSE pointed out that it continues to be part of the other current initiatives of the ASEAN exchanges such as the ASEAN Stars, which is a list of the 30 most exciting stocks of Bursa Malaysia, Hanoi Stock Exchange, Hochiminh Stock Exchange, Indonesia Stock Exchange, Singapore Stock Exchange and the Stock Exchange of Thailand, and the formation of an ASEAN index series, the PSE pointed out.

The seven ASEAN exchanges have a combined market capitalization of approximately $2 trillion and more than 3,600 companies listed. Some of these companies are the largest and most dynamic companies in the world, including leaders in finance and banking, energy, telecommunications, commodities, automotive manufacturing and other industrial sectors.

“The three bourses that will participate in the first stage of the ASEAN Link represent approximately 70 percent of the market capitalization of the seven-member collaboration, thus offering substantial investment opportunities for investors,” Tajuddin Atan of Bursa Malaysia Berhad said.