The viability of clob international after KLSE goes scripless

• Main Authors: Abdul Rani Senin, Chin, Chir Hoe, Tan, Toi Yar
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/51454
• Institution: Nanyang Technological University

KLSE is finally going scripless. This news had sent vibrations of uncertainty and apprehension across the Causeway to Singapore. Brokers and investors had expressed great apprehension and worries over the future of Clob. Will Clob be ‘clobbered’ as suggested by the media? Will the news signify the ‘death’ of Clob, and with it, the disappearance of the highly valued 60 % of its contribution to our SES turnover? In view of the above, this project was undertaken to analyse this issue in greater detail. This project can be divided into two sections. The first section aims to provide a historical perspective of the formation of Clob, a detailed knowledge of the scripless system and the reasons behind the drive for many countries to go scripless. The process in which Singapore and Malaysia underwent to gain the confidence and endorsement of the various market participants to the scripless system will also be described. The second section seeks empirical evidence in analysing the trend of prices and volume of Clob counters that went scripless. The main bulk of the information in, the first section was secondary information from various newspapers and periodicals. The information for the second section consists of both primary and secondary information. Surveys were sent out targeting at three different categories of people - the brokers, investors and financial institutions. The purpose of the surveys was to gather actual market sentiments towards this issue. Prices and volume of counters that went scripless were also gathered in order to analyse how the counters react when they went scripless. This will be compared with a benchmark which is the UOB-OTC index. Analysis of a portfolio of the scripless counters as well as some of the individual counters will be performed. This is done with the intention to assess the impact of scripless trading on the Clob counters. All the data gathered from the surveys and analyses will be reflected and this will be summarised in the last chapter.