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SGX Last:16.16

-0.04

SGX

Singapore Exchange (SGX SP S$8.29)

SGX said it was expanding its American Depositary Receipts (ADRs) programme by adding new companies and partnering a second depositary bank. The new ADRs that will be traded in Singapore are China 's Focus Media, JA Solar and South Korea 's POSCO. Trading will commence from this quarter. Maintain Trading Sell and TP of S$8.00.

cimb

Again, quantitative policy and strategy development without considering qualitative measures!

hlfoo2010 ( Date: 15-Feb-2011 16:00) Posted:

Pay huge sum of money and have no control, does this make any cent and no sense??????????

so long. and what does its says? ??

- Equal number of Australian and Singaporean directors
- Commitments to maintain operations, assets and key staff in Australia
- Commitments to invest in, develop and introduce new products and services in Australia and Singapore

ASX Limited (ASX) and Singapore Exchange Limited (SGX) have agreed to make changes to the governance arrangements of, and provide further commitments in connection with, their merger proposal, which will strengthen the development of the financial services sectors and the national interests of both Australia and Singapore.

This follows engagement by both parties with a wide range of stakeholders since the merger proposal was announced on 25 October 2010.

David Gonski AC, Chairman of ASX, said: “Recent developments in global exchange mergers affirm the judgement of the ASX Board that ASX must participate in regional and global consolidation.

“The changes and commitments announced today, combined with existing regulatory protections, strengthen our belief that the ASX-SGX merger proposal is in the best interests of shareholders and in the national interest of Australia.”

Chew Choon Seng, Chairman of SGX, said: “These commitments demonstrate SGX’s belief in the merits and benefits of the merger, address concerns that have been expressed, and provide further clarity as to how the merged entity will operate in the future to create growth and deliver value for shareholders and all stakeholders.”

Key changes and commitments include:

Governance

1. There will be five Australian and five Singaporean citizens appointed to a 13 member Board of ASX-SGX Limited (ASX-SGX), which is reduced by two from the 25 October 2010 announcement. The Board will also include three international directors (initially, this will be those currently on the SGX Board, one of whom is the ASX-SGX Managing Director and CEO designate, Magnus Böcker). Subject to shareholder approval, the ASX-SGX Board will maintain these arrangements for five years.

2. ASX and all of its licensed subsidiaries, as well as ASX Compliance, will maintain Boards with a majority of Australian citizen directors and an Australian citizen as Chair.

3. Chew Choon Seng, current Chairman of SGX, will be Chairman of the combined group. David Gonski, current Chairman of ASX, will be the combined group’s Deputy Chairman, as well as Chair of the ASX-SGX Integration Committee that will oversee a successful integration, with a focus on building centres of excellence in both Australia and Singapore.

4. ASX-SGX Limited will maintain a listing on both ASX and SGX exchanges, as previously announced.

Existing Australian operations

5. All physical assets required for the operation of ASX Group businesses, including listing, trade execution, clearing and settlement, and all dedicated data and data recovery centres will continue to be developed and located in Australia, and owned and operated by Australian incorporated entities.

6. Senior management, including the Australian business CEO role (designated as current ASX Deputy CEO, Peter Hiom), will continue to be based in Australia, accessible to customers and other stakeholders locally.

7. Companies and products listed and quoted on ASX exchanges will continue to be listed and quoted on these exchanges.

8. Clearing and settlement of trades conducted on any ASX operated licensed Australian market will occur in Australia.

Fees and capital investment in Australia

9. Fee structures in Australia will be responsive to the Australian commercial environment and will continue to be competitive. These fees will be set independently of, and without reference to, the fees charged by ASX-SGX Group for products and services in Singapore or any other jurisdiction in which the Group may operate.

10. To create and deliver growth in Australia, capital expenditure in Australia will be at least 5% of Australian operating revenue (excluding interest income) per annum with a minimum expenditure of A$30 million in the first five years, in keeping with investment levels of recent years.

Future developments

11. ASX will continue to meet the needs of the Australian market for a comprehensive range of listing, trade execution, clearing, settlement and market information products and services for Australia’s primary, secondary and derivative markets.

12. ASX-SGX will work closely with regulators in both jurisdictions and, subject to regulatory approval, introduce a range of initiatives as soon as possible, leveraging the strengths of both ASX and SGX, including:

- An Australian dollar interest rate swaps clearing facility for over-the-counter financial products - this will support the growth of Australia’s capital markets by strengthening links with global OTC markets and reduce systemic risks and costs to market users

- A passport listings service - initially available for the top 200 stocks, this will enable streamlined admission arrangements for SGX issuers to join ASX (and vice versa) to expand their Australian and Asian investor base and improve their access to capital

- Mutual offset arrangements – to enable holders of ASX and SGX derivatives positions to consolidate their exposures and reduce their costs

- Cross product listing and cross access arrangements - to enable ASX and SGX participants to gain access to the full suite of products offered by the ASX-SGX Group. This will improve distribution, liquidity and widen the breadth of product offering for ASX participants and

- Wholesale and retail fixed income platforms – to enable companies to improve access to, and reduce the cost of, debt capital and to provide alternative debt investment instruments for investors on a transparent and contemporary platform.

13. ASX-SGX Group is committed, consistent with regulatory requirements, to invest in Australia in the:

- Number of companies admitted to the official list of Australian licensed financial markets in the ASX Group

- Breadth of products and services quoted on ASX and

- Network of ASX participants facilitating access to ASX Group markets.

14. Centres of excellence will be based both in Australia and Singapore to drive product innovation, leverage relationships with intermediaries and liquidity providers, and to develop new international products and services that will be distributed to the Asia-Pacific marketplace.

15. Expansion will continue of the interest rate, equity, energy and environmental derivative product suite to meet the needs of market users for a wide range of trading and risk management instruments, with expertise and resources leveraged from both ASX and SGX.

No change to existing protections of Australia’s national interest

16. Existing Australian regulatory oversight by Australian regulatory bodies, as well as Australian approval requirements for changes in the ownership of ASX-SGX, will continue following the merger of ASX and SGX.

17. The Australian operations will continue to be licensed under the Corporations Act and remain subject to oversight and annual assessment by the Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA).

18. Changes to all ASX Operating Rules, including Listing Rules, will continue to be scrutinised by ASIC and be subject to Ministerial disallowance before becoming effective.

19. Changes to the capital structure of ASX clearing houses will continue to be regulated by the RBA.

20. Any proposed acquisition of a merged ASX-SGX will require approval under Australian law, including the approval processes of the Foreign Investment Review Board (FIRB), Treasurer and Corporations Act.

21. The ASX Corporate Governance Council will be maintained. The Chair of the Council will conduct a review as to how to work with regional counterparties to develop and harmonise corporate governance practices across the region.

Robert Elstone, Managing Director and CEO of ASX, said: “The recent merger announcements from LSE/TMX and Deutsche Borse/NYSE Euronext underscore the dynamic forces that are driving developments across the world’s major licensed exchange market operators.

“The ASX-SGX merger will create the pre-eminent international exchange group in Asia-Pacific with long-term benefits for investors, listed companies and the shareholders of both ASX and SGX.”

Magnus Böcker, Chief Executive Officer of SGX, said: “The combination of ASX and SGX, which creates and capitalises on the growth opportunities in Asia-Pacific, is compelling for shareholders and exchange users in both markets. We look forward to completing the merger and delivering the benefits for all stakeholders.”

Merger process update

The Merger Implementation Agreement entered into on 25 October 2010 will be amended to reflect these changes and commitments.

SGX is now proceeding to finalise and lodge its formal application with the Australian FIRB. As approval processes are cleared, ASX and SGX will make market announcements and update shareholders on the process and schedule for shareholder meetings and implementation.

Pay huge sum of money and have no control, does this make any cent and no sense??????????

SGX off 0.8% merger pact changes no factor

Singapore Exchange (S68.SG) is down 0.8% at $8.28 on resuming trade after the lunch break, with 861,000 shares exchanging hands, in a muted response to news it, along with ASX (ASX.AU) have agreed to make changes to the governance arrangements of their merger proposal.

The major change to the arrangement relates to the combined entity’s board make up which will now have five Australian and five Singaporean citizens plus three international directors on a 13-member board, reduced by two from the earlier announcement.

“It’s actually much ado about nothing, today’s changes are just aimed at overcoming political obstacles, this really doesn’t change the economics of the offer, and it’s not aimed at the shareholders, it’s just about getting regulatory approval,” says an analyst at a foreign bank.

He adds, “I wouldn’t read too much into the stock’s fall, the STI’s down about 0.9% and the banks are also down around 1.0%, so it’s pretty much in line with the rest of the market.”

Orderbook suggests firm support at $8.22.

/theedge///

Singapore Exchange (SGX SP S$8.35)

Trading in shares of both SGX Ltd and Australian Securities Exchange Ltd (ASX) has been halted this morning pending announcement. SGX and ASX announced during lunch their agreement to make changes to governance arrangements and further commitments. Some of the key changes and commitments as follows:
There will be five Australian and five Singaporean citizens appointed to a 13 member Board of ASX-SGX Ltd (ASX-SGX) reduced by two from the 25 Oct announcement. The Board will also include three international directors (initially, this will be those currently on the SGX Board, one of whom is ASX-SGX Managing Director and CEO designate, Magnus Böcker). Subject to shareholder approval, the ASX-SGX Board will maintain the arrangements for 5years.
ASX and all of its licensed subsidiaries, will maintain Boards with a majority of Australian citizen directors and an Australian citizen as Chair. Current SGX Chairman, Chew Choon Seng, will be Chairman of the combined group. David Gonski, current Chairman of ASX, will be the combined group’s Deputy Chairman, as well as Chair of the ASX-SGX Integration Committee.
All physical assets required for the operation of ASX Group businesses, including listing, trade execution, clearing and settlement, and all dedicated data and data recovery centres will continue to be developed and located in Australia , and owned and operated by Australian incorporated entities. Companies and products listed on ASX will continue to be listed and quoted on these exchanges. Clearing and settlement of trades conducted on any ASX operated licensed Australian market will occur in Australia .
Fee structures in Australia will be responsive to the Australian commercial environment and will continue to be competitive. These fees will be set independently and without reference to fees charged by ASX-SGX Group for products and services in Singapore or any other jurisdiction. Capital expenditure in Australia will be at least 5% of Australian operating revenue (excluding interest income) per annum with a minimum expenditure of A$30m in the first five years, in keeping with investment levels of recent years.
Trading half has been lifted. Our current call on SGX is Trading Sell, with a TP of S$8.00.

/CIMB./

You mean twice in a row?... Smiley

niuyear ( Date: 15-Feb-2011 14:57) Posted:

The God in the making, you are the best of all. hahahah!

iPunter ( Date: 15-Feb-2011 14:42) Posted:

Today ,it really hit low of 8.22 exactly...

And then immediately rebounded to 8.29... Smiley

The God in the making, you are the best of all. hahahah!

iPunter ( Date: 15-Feb-2011 14:42) Posted:

Today ,it really hit low of 8.22 exactly...

And then immediately rebounded to 8.29... Smiley

iPunter ( Date: 14-Feb-2011 10:53) Posted:

Under the circumstances (uncertainty),

perhaps this counter will continue trading in a sideways range.

Thus, a good price to enter would be to wait till it slips down to 8.22 again...

but again, that would of course be just another bet... Smiley

if deal done, what will be the changes. longer trading hours, brokerage fee hike, etc

SGG_SGG ( Date: 15-Feb-2011 14:09) Posted:

Looks like pretty much a done deal...

ASX Ltd and takeover suitor Singapore Exchange Ltd have agreed to have an equal number of Australian and Singapore citizens appointed to the board, if a merger goes ahead.

The proposal, to have five Australians and Singaporeans, as well as three international directors on a 13-member board, is part of changes made to the proposed governance arrangements of the merged entity.

The arrangement would be maintained for five years, Sydney-based ASX said in a statement on Tuesday.

As part of the changed governance proposals, ASX and its licensed subsidiaries and ASX Compliance, will maintain boards with a majority of Australian citizen directors and an Australian as chair.

Chew Choon Seng, current chairman of SGX, would chair the combined group, while current ASX chairman David Gonski would be deputy chairman, as well as chairing the ASX-SGX integration committee. Senior management, including the Australian business chief executive role, would continue to be based in Australia

Today ,it really hit low of 8.22 exactly...

And then immediately rebounded to 8.29... Smiley

iPunter ( Date: 14-Feb-2011 10:53) Posted:

Under the circumstances (uncertainty),

perhaps this counter will continue trading in a sideways range.

Thus, a good price to enter would be to wait till it slips down to 8.22 again...

but again, that would of course be just another bet... Smiley

lucky168 ( Date: 14-Feb-2011 10:40) Posted:

dun know to buy this or not? fear if the merger reallly got through, ASX will chiong while this one will get dump Smiley

SGX down 1.6% after revised merger deal

//

WRITTEN BY THOMSON REUTERS

TUESDAY, 15 FEBRUARY 2011 14:14

May outperform broader market in " lao sai" ing... hehehehhehee........

The best deal is when market is " lao sai" , then put to a halt, so it will not be affected. Done deal in a save way and not lost face.

Looks like pretty much a done deal...

ASX Ltd and takeover suitor Singapore Exchange Ltd have agreed to have an equal number of Australian and Singapore citizens appointed to the board, if a merger goes ahead.

The proposal, to have five Australians and Singaporeans, as well as three international directors on a 13-member board, is part of changes made to the proposed governance arrangements of the merged entity.

The arrangement would be maintained for five years, Sydney-based ASX said in a statement on Tuesday.

As part of the changed governance proposals, ASX and its licensed subsidiaries and ASX Compliance, will maintain boards with a majority of Australian citizen directors and an Australian as chair.

Chew Choon Seng, current chairman of SGX, would chair the combined group, while current ASX chairman David Gonski would be deputy chairman, as well as chairing the ASX-SGX integration committee. Senior management, including the Australian business chief executive role, would continue to be based in Australia

my deep thot abt HALT usually imply a negative effect. why? trade done per day are through many kinds of multiples... can be intra day players, institutional players, retail players, investors, insiders, foreign players, etc... and some buy on borrow/ riding trades. So the longer it HALT, chances of price plunge may turn higher. Even a day would make a big difference.

what concur here. last week, i did make a study on sgx price chart. I observed that after the plunged, the price hovering sideway.

Many chart studying students might see a sideway trading. but i read one ang mios article abt pennies stock says during this kind of situation, the price may trade in range boundaries with matching resistance and support against one another. Past observation note will take approx 11-15 3-waves pattern to withness the completion (3-6mths). then draw the trendline, check for the break through/ or break down vs sentiments(volume)

another way is buy on fundamental call/put, tikam the entry price.... seems must have risk-reward ratios in hand. trigger/ profit or cut...

Noob79 ( Date: 15-Feb-2011 12:13) Posted:

Good choice... when the deal goes through i believe will hit 9-10 dollar again :)

williameng ( Date: 26-Jan-2011 15:59) Posted:

I will go for SGX for short-to-long term buy.

Singapore Exchange halts shares amid talk ASX to get more seats - FIRB questions

Singapore Exchange and ASX suspended trading amid speculation Australia’s main bourse operator will be given more board seats in a proposed merger to overcome opposition from lawmakers in Canberra.

Shares in both companies were suspended today pending a statement about changes to “governance arrangements” in relation to Singapore Exchange’s A$8.4 billion ($10.8 billion) offer for ASX. Under the current offer, the combined group would be made up of 15 directors from five countries, four of them from ASX. Shareholders of ASX would own about 36% of the merged company.

“Given they pointed to governance arrangements in the statement, the temptingly obviously conclusion is that perhaps we’ll see an increase in ASX representation on the board,” said Hong Kong-based Sam Hilton, analyst at Keefe, Bruyette & Woods Asia. “In light of developments elsewhere, they may have made a calculated assessment of the political environment in Australia and concluded it makes sense.”

The trading halts come as Singapore Exchange awaits regulatory approval in Australia for the proposed takeover and follows other overseas exchange-merger announcements last week, including a proposed tie-up between Deutsche Boerse AG and NYSE Euronext. Giving ASX more board seats may help overcome opposition from Australian lawmakers who have opposed the deal.

ASX expects to lift the trading halt after an announcement on the changes that could occur within the next two days, the company said in today’s stock-exchange filing. The Australian exchange operator is scheduled to report earnings on Feb. 17.

‘LOSING CONTROL’

“You can only speculate that they’re taking further action to give comfort about the level of control in Australia,” said Paul Xiradis, who manages about US$12 billion ($15.4 billion) as chief executive officer of Ausbil Dexia in Sydney. “Some of the concerns that have been expressed have been about losing control to a group other than Australian, and this may now ease the passage of approval.”

Singapore Exchange offered to buy ASX on Oct. 25 for A$8.4 billion ($10.8 billion) in a cash and share deal that would be the first merger between two exchange companies in the Asia-Pacific region.

The bid, which won approval from Australia’s competition regulator on Dec. 15, still requires the support of Treasurer Wayne Swan, the Foreign Investment Review Board, the Reserve Bank of Australia, the Australian Securities & Investments Commission, and parliamentarians, several of whom have opposed the sale.

FIRB QUESTIONS

Singapore Exchange said on Jan. 18 that it planned to respond to questions from FIRB about the bid over the following few weeks.

The expected announcement is “likely to be a structural change to the ongoing arrangements based on discussions with regulators,” said Angus Gluskie, who manages about US$350 million ($448.3 MILLION) at White Funds Management Pty in Sydney and owns ASX shares. “If so, such a change would enhance their ability to have the deal approved.”

Even if Singapore Exchange’s takeover wins all regulatory approvals in Australia, laws amending the Corporations Act will need to be passed in both houses of parliament. The minority Labor government led by Prime Minister Julia Gillard needs the support of four independent or Greens lawmakers to pass a bill to raise ASX’s foreign ownership cap to make way for the takeover.

Tasmanian independent Andrew Wilkie, Queensland independent Bob Katter and Greens leader Bob Brown last week reaffirmed their opposition to the ASX sale.

EXCHANGE DEALS

Independent members of parliament Rob Oakeshott and Tony Windsor plus West Australian National Tony Crook said they hadn’t made up their minds on the merger and want to hold further talks with the government.

Last week, Deutsche Boerse said it was in advanced talks to buy NYSE Euronext in an all-stock transaction that would create the world’s biggest exchange operator, accelerating a day of takeovers yesterday that began with London Stock Exchange Group Plc’s acquisition of Canada’s TMX Group Inc.

ASX has nothing to add today’s statement, spokeswoman Leeanne Bland said.

“When we can release more information to the market we will,” she told Bloomberg News by telephone. Singapore Exchange spokeswomen Magdalyn Liew and Carolyn Lim were not immediately available to comment when contacted by Bloomberg News.

ASX shares gained 0.4% to A$38.35 yesterday and Singapore Exchange rose 0.6% to $8.35.

Good choice... when the deal goes through i believe will hit 9-10 dollar again :)

williameng ( Date: 26-Jan-2011 15:59) Posted:

I will go for SGX for short-to-long term buy.

My meaning can be understood if you break it down this way:

If SGX controls (takesover) ASX, then my fear is that the aussies will find themselves kicking themselves in the ass. Who likes to kick himself in the ass surely is a dumb thing. Already, the average Singaporean investors cannot meaningfully make easy money in SGX. So the Aussie investors/players might not find trading in the SGX-managed ASX familiar since it is like living in a different condition with new management offering different styles from theirs...

Those are my thoughts and hope this is clearer, ok?

alianto1969 ( Date: 15-Feb-2011 10:55) Posted:

i dont understand what you mean it will be harder for us to make money? OR The aussies dont understand us and they are not going to make money?

Laulan ( Date: 15-Feb-2011 10:42) Posted:

I had this fear that if SGX takes over ASX. Aussies could not find themselves any dumber. The way of the average Singapore share investor always a hard time making money..

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