Taiwanese bourse inks strategic deal with SGX

Singapore Exchange has entered a strategic partnership with the Taiwan Stock Exchange (TWSE), it was announced yesterday.

TWSE subsidiary Global Link Securities is joining the SGX as a remote trading member, allowing member brokers to directly trade SGX-listed securities through Global Link in the second quarter this year.

This will make such international trades more efficient and cost-effective for Taiwan investors, the SGX said in a statement yesterday.

SGX chief executive Loh Boon Chye said: "By expanding our connections internationally, Singapore's equities market will continue to deepen, with listed companies able to target an ever-increasing investor pool."

TWSE chairman Lee Sush-der added: "The signing of today's agreement is the next stage of our 'step-by-step' cooperation with SGX. We also hope to welcome Singapore investors to trade the Taiwan market by way of a trading link sometime in the future."

Taiwan investors can look forward to the attractive dividend yields that listed companies on SGX offer, the SGX added. Together with TWSE, the Singapore bourse operator plans to launch a series of market education and awareness programmes in Taiwan. The average dividend yield of the Straits Times Index constituents stood at 4.2 per cent as at Dec 31, well above the average of Asian markets at 2.5 per cent, according to Bloomberg data.

There were 769 companies with a total market capitalisation value of $904.8 billion listed on the SGX as at the end of last year.

Healthcare was the best performing sector last year, with the SGX All Healthcare Index generating a 12.2 per cent total annual return.

A version of this article appeared in the print edition of The Straits Times on January 28, 2016, with the headline 'Taiwanese bourse inks strategic deal with SGX'. Print Edition | Subscribe