CTS Global Equity Group, Inc. plans to expand into the Indonesian stock market with an initial fund disbursement into Bank Central Asia (BCA) Indonesia, it disclosed on Monday.
In a disclosure, the proprietary trading firm said the move is in line with its aim to reach a long-term target of getting more revenues from global trading.
“The long-term goal for CTS is to derive 75% of its revenues from the global markets. We have world-class traders that are more than capable and now that we have capital in our arsenal, it’s time to expand into markets like Indonesia,” said CTS Chief Executive Officer Lawrence C. Lee.
For the first quarter of 2022, up to 43% of total proprietary trading revenues came from global markets.
CTS said the expansion allows it to benefit from the neighboring country’s growth prospects. It said the Indonesia Stock Exchange records an average daily value traded of $1 billion as against the Philippine Stock Exchange’s (PSE) $150 million.
It added that the foreign country’s “commodity-driven nature allowed its stock market to thrive despite the global meltdown.”
The Indonesian market positively received GoTo, the merger between the country’s technology companies Gojek and Tokopedia, as seen by the 23% increase on its first day of trading, it said.
CTS said the positive reception should fuel more technology company listings in the coming years for Indonesia.
CTS debuted in the local stock market on April 13, 2022 at a peso per share, raising P1.38 billion in gross proceeds, which will mainly fund its global trading operations and other purposes.
It is a licensed broker/dealer of securities with the Securities and Exchange Commission and both a stockholder and holder of trading rights of the PSE.
The company’s business segments are proprietary trading, brokerage services, and investment income.
In proprietary trading, it has more than 30 traders with exposure in global markets including the United States, China, Hong Kong, Japan, and the Philippines.
On Tuesday, CTS shares were unchanged at P0.93 each. — Justine Irish DP. Tabile