Hutchison Port Holdings Trust (HPHT), the world’s first publicly traded container port business trust, is the first listed security to launch dual currency units on SGX by adding a Singapore-dollar counter to their US-dollar counter. Its Singapore-dollar counter recorded healthy trading that totalled S$4.13 million in its first day of trading. Its US-dollar counter traded US$16.01 million.
SGX said that for the first quarter of 2012, in terms of value traded (US dollar and Singapore dollar), HPHT accounted for 1.8 per cent of the market’s Securities Daily Average Value. On Monday, it accounted for more than 3 per cent of market turnover, suggesting that liquidity may have improved, the exchange added. In terms of Daily Average Volume, the Singapore-dollar counter of HPHT is 17 per cent of its total turnover.
SGX said dual currency trading benefits retail investors by making HPHT more accessible in Singapore dollars and cheaper without incurring the cost of foreign exchange conversions.
The flexibility of dual currency trading is also expected to appeal to investors seeking Singapore-dollar priced assets with exposure to regional growth.