It can enable a cheaper transaction experience.
The linking of the Singapore Exchange (SGX) and the Bursa Malaysia (BM) can benefit retail investors over institutional investors, CIMB Research said.
According to a report, the link can enable a "more efficient" transaction experience at lower costs, and a more diversified stock universe.
Singapore Business Review previously reported that the Monetary Authority of Singapore (MAS) and the Securities Commission Malaysia (SC) will link the stock market trading between the two exchanges by end of this year.
CIMB Research added that this initiative could also encourage more cross-border research reports and facilitate information exchange.
Similar companies listed on SGX that currently trade at lower valuations than their peers on Bursa could also be potential beneficiaries of the trading link.
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