Bernadette Toh Singapore Exchange Ltd. Chief Executive Officer Loh Boon Chye is planning to step down after more than a decade at the helm, with a new leader yet to be named. The 62-year-old said his contract runs till July 2027, and he will work closely with SGX Chairman Koh Boon Hwee and the board on the appropriate timing and arrangements to ensure a smooth handover. Loh was Bank of America Corp.'s head of Asia Pacific global markets before becoming SGX CEO in July 2015.
Prior to joining the exchange, he was known as the "flow monster" for his ability to drive trading volumes and liquidity in markets. At SGX, Loh expanded the exchange operator's derivatives business as well as fixed income instruments, currencies, and commodities business, which now together generate more than 60% of its revenue. Under him, the exchange's annual net profit doubled to S$698 million ($546 million).
But those accomplishments have been overshadowed somewhat by the struggles of Singapore's cash equity market, which has suffered from poor trading liquidity and low valuations of many listed companies. Stock delistings have outnumbered listings every year for more than a decade. The 604 Singapore-listed companies had a combined market capitalization of S$1.2 trillion ($939 billion) as of August.
The leadership change will take place at a crucial time for the exchange, as Singapore pushes to rejuvenate its local stock market. A government-led task force has been working on ways to boost the market, including a S$6.5 billion handout to fund managers including JPMorgan Asset Management and Black Rock Inc. to invest in local equities. Singapore's benchmark Straits Times Index notched a record high last month, and has increased more than 16% so far this year.
The benchmark is on track for its third year of gains, its longest winning streak since 2014. The exchange recently reported its highest revenue and net income since its 2000 listing, showing broad-based growth across equities, currencies and commodities. Its shares have climbed more than 22% this year, giving SGX a market capitalization of S$22.2 billion.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing