Techcomp

The gap for arbitrage will close. Techcomp in Singapore will rise next week to 48  cents. see how tmrw.

Anyone has tried buying Techcomp on SGX and transfer to HK for sales? Do-able? Appreciate if someone can share about the procedure and timeline.

Techcomp share volume in HK today = 120,000 shares.
Singapore = 9,000 shares.

But share price on both sides are now about the same, as the price in HK went down while the one in Singapore stayed flat.

Latest : 2.880 HKD = 49 SGD cents

+ 0.090 HKD

+ 3.23%
In Singapore : 43.5 SGD cents.


How to arbitrage??? Anyone  can share?

Hi, I have just found out the procedure with my broker.
The process will take about 6-8 weeks and the fees involved is approximately HK$350 and S$140 which is roughly S$200 in total. this exclude the brokerage fee for Singapore and HK side.
Hence, for arbitrage to be effective, the trade size have to be large enough to cover the above cost as well as exchange rate losses. The challenge will be the 6-8 weeks gaps....provided you can borrow scrip in HK to short sell while await the buying on SGX to be transferred to HKSE. If not, then it will be subject to the market movement.

Definitely, i think it is worth to arbitrage if the price gap between SGX and HKSE remain constant during that 6-8 weeks transfer period.
Regards
erelation

Thanks erelation for the info. I assume the $200 cost is fixed and not variable.

Then my calculation is as follows for anyone thinking of arbitrage:

1. Since the costs would be S$200 + S$50 (broker comms) = $250, all it takes is 5,000 shares of Techcomp to break even. Assumes that the stock can be sold for 5 cents higher than purchased in Sg.
2. 5,000 shares in Sg is about $2,150 only. Low requirement. Bigger shareholding = biggger profit