Philippine Stock Exchange, Vietnam bourse to forge alliance

MANILA, Philippines - The Philippine Stock Exchange (PSE) said yesterday it will pursue an alliance with the Ho Chi Minh Stock Exchange (HOSE), one of the fastest growing bourses in Southeast Asia.

The board of directors of the PSE approved the execution of a memorandum of understanding (MOU) with HOSE for mutual cooperation on information and experience sharing, subject to the execution of definitive implementing agreements.

The MOU is scheduled to be signed on Sept. 25, 2009 in Vietnam.

Based on publicly available data, HOSE has a total of 169 listed companies as of the end of 2008, from just 26 listed firms in 2004. In 2007, it registered a total of 121 listed companies. Its value turnover as of end-2008 was approximately $7 billion while domestic market capital was over $9 billion.

“We intend to pursue this accord with HOSE to foster international cooperation and mutual collaboration and communication between our exchanges. Amid these uncertain times, we remain keen on opportunities our neighboring markets have to offer,” PSE president and chief executive officer Francis Lim said.

Aside from Vietnam, the PSE inked an MOU with the Shenzhen Stock Exchange in April. Under the MOU with Shenzhen, both exchanges agreed to share information and experiences on volumes, market price indicators and other pertinent information regarding their respective past performances, market data management, rules and regulations as well as practices regarding market regulation.

To further enhance its visibility in the region, the PSE also inked an MOU in February this year to create a trading linkage among ASEAN countries that will allow investors to buy or sell ASEAN-listed securities through their local brokers.

Among ASEAN bourses that teamed up with the PSE to set-up the electronic linkage are Bursa Malaysia (BM), Indonesia Stock Exchange (IDX), Singapore Exchange (SGX), and the Stock Exchange of Thailand (SET).

This ASEAN electronic link is expected to be launched in 2010, beginning with Bursa Malaysia and the Stock Exchange of Thailand, followed by the Singapore Exchange and the PSE.

“We should not be contented with staying local. By partnering with our peer exchanges in the ASEAN region, the PSE is moving beyond its shores to draw strength from the successes of other markets,” Lim said.

Last year the PSE also signed an MOU with the New York Stock Exchange (NYSE) Euronext to establish a strategic alliance to jointly develop new exchange-traded products, explore new opportunities in trading system architecture and technology and enhance market participant connectivity and data management.