Narayana’s reply to SGX balls carrier, Vincent Khoo
A pretentious ‘watching brief’ on the changing scene at SGX
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A pretentious ‘watching brief’ on the changing scene at SGX
Narayana Narayana
17 June 2015
One could confidently expect the Singapore Exchange (SGX) to hold its own against all comers. In such a scenario, the “watching brief” by the writer of the letter “Expectations of incoming SGX CEO should be toned down” (BT, June 12) appears pretentious, if not uncalled for, considering the newly appointed CEO is still weeks away from sitting in the saddle.
The writer’s blanket assumption that “everyone is looking to the new CEO as the Messiah” is woolly thinking. There must be hordes of people around who are plainly indifferent to who captains SGX. But leaving that aside, with SGX in the invidious position of simultaneously being market regulator as well as a public-listed company with focus on its bottom line, it could be argued that SGX shareholders have as much reason (if not more) to “tone down their expectations”, as market players and involved trading representatives.
The presumption that any meaningful change is “very unlikely” is, to say the least, quite unflattering to the new appointee with the implied innuendo that the latter has little option/room (or ability?) except to maintain the status quo (or ante). New brooms are traditionally expected to “sweep clean”, so why make a particular exception here?
The pre-emptive plea/call to “don’t shoot the pianist - he’s just there to do his best” finds a close parallel in India’s “anticipatory bail” and merely adds to the negativity that pervades the letter.
Letter writer Vincent Khoo’s personal vendetta/differences with the Society of Remisiers (SRS) are clearly reflected in his many potshots at them. It is a matter of regret that they find place in a public forum like BT’s Mailbag. But it is patently unfair to hang them alone for “treating SGX as a casino”.
There is little doubt that the local bourse has over the years come to be regarded as another gambling centre. Over a decade ago, I questioned the wisdom of granting listing status to stocks (mostly “China-make”) with minimal par-value and issued / trading at low price. Most had little intrinsic investment merit, but had popular punting appeal based solely on “affordability”. I was shot down by a top corporate honcho with the comment that “par values are no longer relevant in this changed investment climate; what matters is earnings”.
SGX found it necessary to introduce MTP five months ago after the many crows came home to roost. All evidence is that the measure has failed in its avowed objective to attract “retail players” significantly to “quality stocks”. “Penny-dreadfuls” continue to hog the daily “Most Actives”. A recent ST letter (“Check S-chip firms before they can list”) again brings into sharp focus public frustration at the apparent lack of adequate screening before listing. Naive small investors may be forgiven for trusting that listing on SGX confers some small degree of respectability, which caveat emptor cannot totally eradicate from their mindset.
Mr Khoo concludes his tiresome tirade with “Are remisiers going to remain as stockmarket junket operators . . . “
Hahaha - how right he is, even if unwittingly. The dictionary defines “junket” as a milk-based sweet dessert. Credit for providing the sour lemons that have turned small investors away from the market should more properly go to SGX.