Singapore Stock Exchange
The Singapore Stock Exchange (SGX) is the Asia-Pacific’s first stock exchange. It was founded in 1877 as the Straits Settlements Stockbrokers Association and renamed to its current name in 1999. The SGX is a member of the World Federation of Exchanges (WFE) and the Asian and Oceanian Stock Exchanges Federation (AOSEF).
The SGX is located at 9 Raffles Place, Hong Lim Complex, and its main trading floor is in the same building as the Monetary Authority of Singapore (MAS). The SGX offers two types of securities: equities and debt securities. It also offers derivatives contracts, including options and futures. The SGX is home to about 800 listed companies with a combined market capitalisation of S$1.6 trillion as of April 2015.
Well-known listed companies
Well-known companies listed on the SGX include Singapore Airlines, DBS Group Holdings, OCBC Bank, United Overseas Bank, CapitaLand, Keppel Corporation, SembCorp Industries, and Singapore Telecommunications. The SGX is also one of the few exchanges globally that allow dual listing of stocks.
A company can list its shares on both the SGX and another exchange, such as the New York Stock Exchange or the London Stock Exchange. It allows companies to tap into a wider pool of investors and provides investors with more choices regarding where to invest their money.
The history of the SGX can be traced back to 1837, when the British East India Company founded the Straits Settlements as a base for its operations in Southeast Asia.
The Straits Settlements consisted of Singapore, Penang, and Malacca. In 1855, the British government took over direct control of the Straits Settlements from the East India Company.
During the 19th century, the Straits Settlements were a key hub for trade between China and Southeast Asia. It led to a growing need for a place where traders could buy and sell stocks and other securities. In response to this need, the Straits Settlements Stockbrokers Association was established in 1877. It was the first stock exchange in Singapore and Southeast Asia.
The Straits Settlements Stockbrokers Association was renamed the Singapore Stock Exchange in 1999. It was done to reflect the city-state’s status as a regional financial hub. The exchange is now home to about 800 listed companies with a combined market capitalisation of S$1.6 trillion as of April 2015
Some of the most recognised companies listed on the SGX include Singapore Airlines, DBS Group Holdings, OCBC Bank, United Overseas Bank, CapitaLand, Keppel Corporation, SembCorp Industries, and Singapore Telecommunications.
What has been happening lately?
The SGX has been working to position itself as a leading venue for trading Chinese stocks in recent years. To this end, it has launched many initiatives, such as the SSE 50 Index Futures contract launch in 2014. It was the first futures contract traded on the SGX that tracked an index composed of Chinese stocks.
The SGX has also been working to attract more technology companies to list on its exchange. In 2015, it launched the SGX T50 Index, which tracks the performance of the 50 largest technology companies listed on the SGX. Some of the companies included in this index are Singapore Post, Silverlake Axis, and iFAST Corporation.
The SGX is well-positioned to continue playing a leading role in the Asian financial markets. Its initiatives to attract Chinese and technology stocks are likely to result in a more diverse and liquid market, which will benefit both listed companies and investors. In addition, the SGX’s dual listing regime provides companies with a unique proposition that is not available on other exchanges. The city-state’s status as a regional financial hub makes the SGX an attractive option for companies looking to list their shares.
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