There is progress for the PSE’s plan to strengthen its presence in the Southeast Asia, and improve the Southeast Asia market un general, as SEC approves their initiative to participate in the cross-border trading platform. This is together with Malaysia, Singapore and Thailand.
Got the news hot off the inquirer.net, where the article says that the initiative aims to strengthen the trading among the four participants and to make the respective stock markets attractive to the rest of the investing public. This will mean that Philippine stocks will be more readily available for purchase from the other three countries while their stocks will likewise be available for trading here in the country.
Details have yet to be finalized but timelines are looking at early next year as the start of the shared platform. It will be interesting to know what the listed companies in Singapore, Malaysia and Thailand are, and if they have any part-ownerships with PSE’s very own listed companies. Like for example, I know Globe Telecom here is closely related to a telco company in Singapore. Likewise, I think San Miguel beer also has ties with a Singaporean beer company, and more recently, San Miguel Corporation had a deal with Malaysia’s Exxon Mobil.
Foreign funds have always been considered as smart money by our investors, with the presumption of course that companies being bought by foreign funds are really worth investing in, in the eyes outsiders. I wonder why but it sometimes strikes me that the foreign funds know better of our local companies than we do. Because we like it when they buy and dread it when they slowly pull-out of a stock. Let us see if this holds true for PSE stocks. Right now, foreign funds come in via brokers. This time around, I think there will be more opportunity for more brokers to buy PSE stocks, once the shared platform is rolled-out.
I am excited to know whether small time stock traders like me will have the opportunity to buy Singaporean, Malaysian and Thailand stocks. Well, it will be some sort of accomplishment for me if ever I get to buy a listed company overseas. You see, I’ve always wanted to invest some money in the likes of Apple, or Coca-Cola (I wonder why the stock code is KO) or some company being run by say Warren Buffet. Having Southeast Asian stocks is not a bad start, not at all.
But definitely, this becomes more complicated than just buying PSE listed stocks as if buying stocks to begin with was easy enough. There will be a whole lot more of variables to consider, such as the economy of the country, exchange rate effects, and news on the company you invested in. Due diligence required will be a lot higher. And monitoring need to be more vigilant. This might have implications as well in turnaround time when you buy or sell (whether the trade gets matched quickly and whether proceeds are made available immediately), and the question on whether online trading sites are ready for this, system-wise.
Anyway, just getting ahead of the details to come. Nevertheless, I am excited for our stock market, and for PSE the stock as well (Php243 as of tonight). And can’t wait to be acquainted with the Singaporean Exchange, Bursa Malaysia and Stock Exchange of Thailand. I hope this also strengthens the performance of PSE the stock in the coming weeks.
PS. It has been long planned, I just forget the timelines but PSE also has plans of extending the trading in the afternoon past the usual 12:10pm market closing, to enable traders and investors to react to market movements and news here and abroad that occur after lunch, and also, to give more time for stock trading activities. Most likely, this is also some sort of aligning our stock market schedules with other neighboring countries. More trades and more publicity, more income for PSE.
PSS. I am always excited to hear good news and new improvements for PSE, not just for the stock but for the whole stock market in general. Such changes actually affect us all who participate in the market!