Consolidation of major stock exchanges has become a strong trend recently. Even the mighty New York Stock Exchange and Nasdaq are going for mergers. Obviously, being "kiasu", Singapore never wants to lag behind. A SGX-ASX merger is looking increasingly likely by the day. Critical mass and economies of scale that result from the ASX-SGX merger would potentially provide a highly efficient international capital market linked to the vibrant economies of South Asia, and provide a gateway for Australian business to Asia and the rest of the world.
In this post, I will be suggesting 3 ways to position or re-position one's portfolio to benefit from the very possible SGX-ASX merger in the second half of 2011.
Here goes.......
1. Focus on SGX-listed companies which have good, solid businesses in Australia. E.g. Singtel (Telecommunications) and Noble Group (Commodities/Resources)
2. Focus on SGX-listed blue chips because the Australian ...
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