Chart of the Day: ‘Singapore-China’ stock connect speculation firms SGX’s share price by 4%

Volume increased over the past three sessions.

There has been speculation in certain quarters of the markets that a ‘Singapore-China’ stock connect may be in the pipeline.

According to Nicholas Teo of CMC Markets, this has brought attention to SGX’s share price which has firmed by as much as 4% on increased volume over the past three sessions.

Teo notes that while this may be pure conjecture by the markets at this stage, the prospect of allowing an easier flow and passage for trading in securities, connecting the Chinese stock markets to the Singapore Exchange - as a South East Asian representative – makes compelling reading.

Here’s more from CMC Markets:

The question remains as to whether local authorities could pull this off.

Adding weight to this theory, perhaps, is the recent relocation of Mr Lawrence Wong, Head of Listings and China business of SGX, to China.

SGX is trading at a TTM PE of 28X versus HKEX at 50X, LSE at 46X and the ASX at 20.5X.