Singtel is next S’pore stock to be traded on Thailand bourse under depository receipt linkage scheme

BANGKOK – Singtel will be the next Singapore stock to be traded on the Stock Exchange of Thailand (SET) under the expanding Thailand-Singapore Depository Receipt (DR) linkage scheme, said Singapore Exchange (SGX) group chief executive Loh Boon Chye.

Speaking at an event in Bangkok on Nov 27, Mr Loh said this will likely take place some time in 2024. It will be an important step towards the enhanced integration of South-east Asia’s stock markets.

DRs are financial tools that allow investors to trade in a foreign stock on their own stock exchange.

SGX and SET began their exchange-level DR cooperation – the first of its kind in South-east Asia – in 2021. In 2023, on May 30, three major Thai stocks – Airports of Thailand, 7-11 operator CP All, and oil and gas giant PTT Exploration and Production – began trading on the SGX via the DR linkage.

The DR on Singapore Airlines made its debut on the Thai stock market in September 2023.

SET president Pakorn Peetathawatchai said the partnership with SGX marks the first milestone of the journey towards a more integrated and accessible Asean exchange market. This, he added, will enable investors to trade Asean stocks via DR seamlessly across the entire region.

Mr Loh said the three Thai DRs have been well received by retail investors in Singapore, with the number of those investing in the Thai DRs doubling over the six-month period since the launch in May. The spreads and prices of the three DRs were similar to those seen on SET, he noted.

“Our investors are able to access Thai stocks on a platform they are familiar with through their security brokers, dealing with local trading hours and the local currency under domestic rules that they are familiar with,” said Mr Loh of the DR stocks.

While more Singapore stocks are expected to be traded on the SET in future, Mr Loh said these will remain under the SGX’s supervision.

“Even though it is a DR, the underlying stock is still traded on the SGX platform, which means it is under our surveillance,” Mr Loh told The Business Times.