Prolonged search for next SGX CEO taking its toll on Singapore stocks

Bocker’s heir will have big shoes to fill.

The prolonged search for SGX’s next Chief Executive Officer could be one of the culprits behind lacklustre trading on the local bourse.

Outgoing CEO Magnus Bocker declared his resignation late in February, effective by the end of June. With less than 4 weeks to go before Bocker leaves the helm, the SGX is yet to announce his successor.

The SGX’s securities business suffered lacklustre trading in May, with turnover down 2% on year and 13% on month to $23b. Daily average value of trading was $1.1b, down 2% year-on year and 9% month-on month.

“Without a successor being announced soon, this lackadaisical mood may continue for a while as most search for a direction with regards to the business of equity trading in Singapore,” said CMC Markets analyst Nicholas Teo.

Teo noted that Bocker’s successor will have big shoes to fill. The new CEO must quickly assemble a new and credible team restore investors’ faith in the market.

“They need to badly to reach out to the stakeholders of the game, most of whom remain disillusioned by the past couple of years of slow pickings. Specifically, remisiers, stockbrokers, securities companies, investment banks, corporate finance teams and even corporates themselves have to be engaged and brought to the table to determine a plan. This plan needs to breathe life back in to and revitalise the local stock markets, bringing back its vibrancy,” he said.

The SGX said in February that it has shortlisted internal and external candidates to take over Bocker.