Three of Thailand’s blue-chip firms began trading as depository receipts (DRs) on the Singapore Exchange (SGX) on Tuesday, allowing investors to trade via beneficial interest and take part in Thailand’s economy.
The SGX Group and the Stock Exchange of Thailand (SET) have partnered on the DR Linkage, and trading is taking place under the terms of a Memorandum of Understanding (MOU). As the first DR cooperation amongst ASEAN exchanges, this is a major step in the effort to strengthen ties between countries in the region. By working together, the two recognized exchanges can better serve their respective markets and attract more investors and businesses.
DR trading on the SGX launched with DRs linked to the shares of Airports of Thailand Pcl. (AOT), CP ALL Pcl. (CPALL), and PTT Exploration and Production Pcl. (PTTEP).
Convenience store chain operator CPALL began the day at S$2.49, up 0.8% from its opening price of 63.5 baht (S$2.47) on the Stock Exchange of Thailand (SET).
Airport operator AOT opened at S$2.78 (70.50 baht), a 1.5% premium over its SET starting price of S$2.74 (70 baht).
PTTEP, a company involved in the energy sector, began trading at S$5.62, up 1.1% from its SET opening price of 144 baht (S$5.62).
According to SET president Pakorn Peetathawatchai, investors in both countries will benefit from greater investment opportunities and easier access to the stock markets brought by the Thailand-Singapore DR Linkage project of SET and SGX.
He believed that Singapore, a regional investment hub, would serve as a platform for DR trading to promote listed Thai companies internationally.
