Singtel will be trading in the Thai stock exchange in 2024 under the expanding Thailand-Singapore Depository Receipt (DR) linkage scheme, according to Singapore Exchange (SGX) group chief executive Loh Boon Chye speaking at the event in Bangkok on November 27.
The chief of Singapore Exchange said that the addition will be made some time in 2024 and it will be an important step towards the enhancement of stock markets in Southeast Asia.
Depository Receipt (DR) is financial tools, which make it easier for investors to invest in foreign stocks, ETF, REIT, or Infrastructure Trust. DRs open up a new world of investment opportunities by allowing investors to trade of foreign securities on the stock exchange in the host’s own currency.
SGX and Stock Exchange of Thailand (SET) first started this cooperation in 2021, which was the first of its kind in Southeast Asia. As of May 30, 2023, three big-cap stocks in the Thai bourse namely; Airports of Thailand (AOT), 7-11 operator CP All (CPALL) and oil and gas arm of state-owned enterprise PTT Exploration and Production (PTTEP), began trading on the SGX via the DR linkage.
In exchange, a DR on Singapore Airlines made a debut in Thai bourse in September 2023.
SET President Dr. Pakorn Peetathawatchai said that this partnership scheme will pave the way towards a more integrated and accessible Asean exchange market, which will enable investors to trade regional stocks seamlessly via DR.
Meanwhile, SGX’s Loh said that the current three securities of Thai DRs are well received by retail investors in Singapore, adding that the number of those investing in these Thai DRs doubled over the six-month time since the launch in May.
