Sicat: PH to gain from ASEAN Exchanges project

Posted at 05/21/14 2:07 PM

MANILA, Philippines – Philippine Stock Exchange (PSE) president and chief executive officer Hans Sicat is expecting gains from the ASEAN Exchanges initiative, which links seven exchanges from Malaysia, Vietnam, Singapore, Thailand, Indonesia and the Philippines, as part of the ASEAN integration in 2015.

“We look forward to 2015, we think it’s a great opportunity for a relatively small economy like the Philippines to benefit from all the other opportunities,” Sicat said in an interview on CNBC.

The Stock Exchange of Thailand, Bursa Malaysia and the Singapore Exchange have already established an electronic linkage for trading inter connectivity.

Sicat said the PSE, Hanoi Stock Exchange, Hochiminh Stock Exchange, and Indonesia Stock Exchange will follow suit by 2015.

However, he noted that the Philippines’ corporate regulator will have to change some its rules to make the Philippines competitive.

“The Securities and Exchange Commission needs to align some of its rules and laws to ensure that we will be able to operate in a more or less even fashion,” he said.

The linked exchanges make up a combined $2 trillion market with more than 3,600 companies.

Sicat also highlighted the significance of foreign money in the PSE, saying it makes up about 51 percent of total average daily trading volume.

“That’s a significant number, and I think a very important part of this economy. But I’d like to say that one of the interesting trends that we have seen is that with the increase of inflows in this economy over the last two to three years, what we have also seen is a large increase of money being put to work by the local investors so that’s why the ratios are kept more or less in the same path,” he said.