Extracted from The Edge,
The big news of today was the Singapore Exchange is expected to make a full takeover bid for the Australian Stock Exchange on Monday. SGX is bigger than the ASX with a market value of around $10 billion against A$6.2 billion ($7.9 billion) for the ASX and is also trading on a multiple of 27 times against 17 times for the ASX. According to The Australian, the chairman and CEO will be from SGX and the deputy chairman will be from ASX.
The other big news this week — the 25 bp hike in interest rates in China — may turn out to be a non-event, say some analysts. Nomura Securities says that equity markets ought to have little to fear from the rate hike. “At first sight the rate hike might not appear to be good news for equities, but we think it ought to remove the threat of arbitrary rule changes on sectors that have undermined investor sentiment,” the report states. Indeed, Nomura is bullish on China A-shares. Interestingly, some of their ADRs (American Depository Receipts) started trading on SGX’s GlobalQuote board today.
Unfortunately, dealers reported that in total only $10 million worth of shares changed hands and expectations were too high.
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