Asean fund commences trading in Singapore
An exchange-traded fund (ETF) called the FTSE/Asean 40 ETF, the performance of which is based on the FTSE/Asean 40 Index, was listed on the Singapore Exchange on Thursday.
The FTSE/Asean 40 ETF is managed by the CIMB Group, with Barclays Global Investor and Citigroup acting as fund adviser and market-maker, respectively. It was created by the stock exchanges of five Asean countries - Indonesia, Malaysia, the Philippines, Singapore and Thailand - and consists of the 40 companies with the largest market capitalisation in those countries. "The FTSE/Asean 40 ETF will help increase investment opportunities in the Asean region. Also, it will help increase trading liquidity in stocks referred to the FTSE/Asean 40 Index," said Sethaput Suthiwart-Narueput, senior vice president of the Stock Exchange of Thailand. Nine of the 40 stocks listed on the FTSE/Asean 40 Index are Thai. They are Siam Commercial Bank, Thai Petrochemical Industry Plc, Krung Thai Bank, PTT Plc, PTT Exploration and Production Plc, Bangkok Bank, Kasikornbank, Advanced Info Service Plc and Siam Cement Plc. Together, they make up 15.35 per cent of the FTSE/Asean 40 Index. The index was launched on September 21, 2005. It has risen 22.7 per cent since then. To be eligible for listing on the FTSE/Asean 40 Index's calculation, stocks must have at least US$100 million (Bt3.75 billion) in market capitalisation and daily turnover of no less than 20 per cent of the company's total shares.
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