Ascendas India Trust (CY6U) Is Yet to See Trading Action on Jun 14

June 14, 2018 - By Ash

Shares of Ascendas India Trust (SGX:CY6U) closed at 1.05 yesterday. Ascendas India Trust currently has a total float of 1.04 billion shares and on average sees 829,277 shares exchange hands each day. The stock now has a 52-week low of 0.99 and high of 1.2.

Singapore Exchange (SGX): Asia’s Rising Exchange Giant

Singapore Exchange, or SGX, is the main securities trading platform in Singapore.




The assets traded on the platform comprise stocks, bonds, debentures, derivatives and exchange traded funds (ETFs). Ascendas India Trust is represented there as well. Stocks are the most popular assets traded on SGX.

As of January 2009, there were 768 companies whose stocks were listed on SGX. Several foreign companies are listed on SGX. In 2009, there were 455 domestic companies and 313 foreign companies listed or cross-listed on the exchange. SGX is one of the major exchanges for stocks and derivatives in South-East Asia and aims to be Asia’s leading securities exchange. This leasing position allow companies like Ascendas India Trust to receive new trading deals.

SGX was created on December 1, 1999. It resulted from a merger of Singapore International Monetary Exchange and Stock Exchange of Singapore. The predecessors were Singapore’s most established and highly reputed exchange platforms.

The management of SGX

SGX is owned and operated by Singapore Exchange Limited, a public company whose shares are also listed on the platform. SGX went public about a year after SGX was formed. The exchange stock is a component of benchmark indices Straits Times Index and MSCI Singapore Free Index.

Regular trading on SGX starts at 9:00 a.m., but the exchange runs a pre-market session for 20 minutes between 8:30 a.m. and 8:59 a.m. The exchange ends regular trading at 5:00 p.m. After the close of the regular sessions, the exchange allows additional six minutes of extended trading until 5:05 p.m. after which the platform closes for the day at 5:06 p.m.

Straits Times Index (STI) tracks the performance of 30 SGX listed companies with largest market capitalization. STI, which has existed since 1966, reviews its components quarterly.

GSX continues to attract international companies seeking to list in the country. It opens new opportunities to Ascendas India Trust.The bi-annual newsletter, CG Watch, ranked Singapore top among 12 Asian markets on the basis of corporate governance standards in its 2016 publication. Singapore scored 67 points, beating Hong Kong, which ranked second with scored 65 points. Singapore not only improved its ranking but also its score from 64 points in 2014 when the markets were last ranked by CG Watch.

The improving corporate governance standards in the country partly explain the growing interest by offshore companies to list their stocks on SGX. In June 2016, SGX collaborated with Sustainalytics to provide ratings for companies listed on the stock exchange.

Good corporate governance helps in boosting investor confidence in a company and economy. As such, good corporate governance has been linked to high foreign direct investment (FDI). Experts have repeatedly said Asian economies could grow faster if efforts were made to improve governance standards that would in turn attract more FDI inflow.

FDI inflow into Singapore was $68 billion in 2014, compared with Hong Kong’s $103 billion. In that year Hong Kong ranked topped in the CG Watch report. But both markets registered an increase in FDI.

Standout performers

Stocks that have registered outstanding performance on SGX in the last five years include Thai Beverage Public Company Limited (SGX: Y92), which produced a total return of 216%; Comfortdelgro Corporation Limited (SGX: C52) and SATS Ltd (SGX: S58) also performed well in the period, producing returns of 123% and 119%, respectively. But transport company SMRT Corporation Ltd (SGX: S53) as among the poor performance in the last five years, producing negative returns.

SGX has more than 90 companies with market cap above S$1 billion. And Ascendas India Trust is represented there.

Investing in Singapore stocks is hot lately. More retail investors are looking into stocks traded on the exchange. Its a way to bet on the Singaporean growth prospects.

Ascendas India Trust was listed in August 2007 as the first Indian property trust in Asia. The company has market cap of $1.09 billion. The Company’s principal objective is to own income-producing real estate used primarily as business space in India. a-iTrust may also develop and acquire land or uncompleted developments primarily to be used as business space, with the objective of holding the properties upon completion. It has a 5.2 P/E ratio. The portfolio comprises seven world-class IT business parks in India, namely the International Tech Park Bangalore, International Tech Park Chennai and CyberVale in Chennai, CyberPearl, The V and aVance Business Hub in Hyderabad, and BlueRidge 2 in Pune. a-iTrust is structured as a business trust, offering stable income distributions similar to a Real Estate Investment Trust.

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