.jpg)
Singapore Exchange’s (SGX) securities market today successfully began dual currency trading.
Hutchison Port Holdings Trust (HPHT), the world's first publicly traded container port business trust, is the first listed security to launch dual currency units on SGX by adding a S$ counter to their US$ counter. It saw healthy trading of its S$ counter, totalling S$4.13 million in its first day of trading. Its US$ counter traded US$16.01 million.
For the first quarter of 2012, in terms of value traded (USD & SGD), HPHT accounted for 1.8% of the market’s Securities Daily Average Value (SDAV). Today, it accounted for more than 3% of market turnover, suggesting that liquidity may have improved. In terms of Daily Average Volume (DAV), the S$ counter of HPHT is 17% of its total turnover.
Dual currency trading benefits retail investors by making HPHT more accessible in Singapore dollar, and cheaper without incurring the cost of foreign exchange conversions. The flexibility of dual currency trading is also expected to appeal to investors seeking Singapore dollar priced assets with exposure to regional growth.
