Close Menu
    Facebook X (Twitter) Instagram
    Trending
    • Democrats Desperate To Attract Male Voters
    • ‘The View’ Co-Host Sunny Hostin Says Elon Musk’s DOGE Cuts Have Killed 300,000 People — ‘Mostly Children’ (VIDEO) | The Gateway Pundit
    • Meghan Markle’s Wild Hospital Dance Goes Viral
    • Guatemala president reaffirms support for ‘brothers’ in Taiwan
    • US-backed GHF group extends closure of Gaza aid sites for second day | Gaza News
    • Stanley Cup Final Game 1 takeaways
    • Regulate almighty AI? Silly humans!
    • Steve Bannon Urges For The Arrest Of Lindsey Graham
    News Study
    Thursday, June 5
    • Home
    • World News
    • Latest News
    • Sports
    • Politics
    • Tech News
    • World Economy
    • More
      • Trending News
      • Entertainment News
      • Travel
    News Study
    Home»Trending News

    Commentary: Singapore’s S$5 billion bet on the stock market

    Team_NewsStudyBy Team_NewsStudyApril 4, 2025 Trending News No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email


    SMALL-CAP STRENGTH

    The three main banks in Singapore – DBS, OCBC, and UOB – dominate the market, accounting for about 25 per cent of every day buying and selling quantity. Their sturdy efficiency has led to a major improve of their mixed weighting within the Straits Occasions Index (STI), from 40 per cent in 2019 to 54 per cent as we speak.

    Nonetheless, over 80 per cent of the listed firms on the SGX have a market capitalisation of beneath US$1 billion, positioning the trade as a small-cap market. This section, significantly small and mid-cap shares, stays undervalued regardless of being well-run, worthwhile, and providing engaging dividends. Revitalising this market section might deliver much-needed liquidity and power to the SGX.

    Somewhat than forcing fund managers to spend money on particular person shares, a simpler technique might be to create indices and exchange-traded funds (ETFs) primarily based on small and mid-cap firms – maybe an SGX50, SGX100, and SGX200.

    These funds would make it simpler for institutional buyers, together with household places of work, to achieve publicity to small- and mid-caps, thus enhancing liquidity. Such a transfer might considerably alter the buying and selling dynamics of the native market by bringing institutional cash into beforehand uncared for segments.

    Whereas the EMRG’s S$5 billion initiative seems to be a step in the appropriate route, some trade observers argue that extra might be accomplished to help the SGX. For instance, it’s price contemplating if government-backed funds just like the Authorities of Singapore Funding Company (GIC) ought to spend money on SGX-listed shares.

    If the SGX succeeds in attracting regional firms to checklist right here, it makes little sense if the GIC doesn’t spend money on them, significantly when it does so on different exchanges like Hong Kong. Such an method might additional improve the attraction of the SGX as a list vacation spot.

    The problem of delisting, which has been a rising concern with about 20 firms delisting final yr and 5 to this point this yr, may be alleviated if the S$5 billion programme injects enough liquidity into the market. As well as, the tax incentives already introduced will function a pretty catalyst for firms to contemplate the Singapore marketplace for their IPOs.

    Nonetheless, there’s room for additional enchancment. One potential space is investor training. Retail buyers, significantly the youthful demographic, are likely to gravitate in direction of abroad markets and extra risky belongings like cryptocurrencies. Provided that the present SGX retail base is basically aged 55 and above, efforts to have interaction youthful buyers might assist diversify the investor base and encourage extra participation within the native market.

    Analyst protection of mid- and small-cap shares is also enhanced. Analysts must be inspired to determine and promote undervalued shares with development potential, moderately than focusing totally on large-cap firms. Brokers, too, must be extra prepared to have interaction with shoppers and promote development and worth shares, aligning with buyers’ threat appetites.

    Lastly, attracting massive, well-known firms to checklist on the SGX, similar to PSA, Changi Airport, and NTUC, might function a strong sign of the trade’s competitiveness. Waiving or lowering some transaction charges and taxes might additional scale back prices and make the SGX one of the engaging buying and selling platforms in Asia.



    Source link

    Team_NewsStudy
    • Website

    Keep Reading

    Guatemala president reaffirms support for ‘brothers’ in Taiwan

    Southwest Pacific hit by unprecedented marine heatwaves in 2024, UN says

    US auto suppliers say immediate action needed on China rare earths restrictions

    Race for robotic supremacy: US and China battle to build world’s most advanced humanoids

    A-ha front man Morten Harket diagnosed with Parkinson’s disease

    Trump signs proclamation to suspend visas for new Harvard international students, cites ‘concerning foreign ties’

    Add A Comment
    Leave A Reply Cancel Reply

    Editors Picks

    Democrats Desperate To Attract Male Voters

    June 5, 2025

    ‘The View’ Co-Host Sunny Hostin Says Elon Musk’s DOGE Cuts Have Killed 300,000 People — ‘Mostly Children’ (VIDEO) | The Gateway Pundit

    June 5, 2025

    Meghan Markle’s Wild Hospital Dance Goes Viral

    June 5, 2025

    Guatemala president reaffirms support for ‘brothers’ in Taiwan

    June 5, 2025

    US-backed GHF group extends closure of Gaza aid sites for second day | Gaza News

    June 5, 2025
    Categories
    • Entertainment News
    • Latest News
    • Politics
    • Sports
    • Tech News
    • Travel
    • Trending News
    • World Economy
    • World News
    About us

    Welcome to NewsStudy.xyz – your go-to source for comprehensive and up-to-date news coverage from around the globe. Our mission is to provide our readers with insightful, reliable, and engaging content on a wide range of topics, ensuring you stay informed about the world around you.

    Stay updated with the latest happenings from every corner of the globe. From international politics to global crises, we bring you in-depth analysis and factual reporting.

    At NewsStudy.xyz, we are committed to delivering high-quality content that matters to you. Our team of dedicated writers and journalists work tirelessly to ensure that you receive the most accurate and engaging news coverage. Join us in our journey to stay informed, inspired, and connected.

    Editors Picks

    WINNING: Trump Admin. Removes Anthony Fauci’s Wife and One of His Closest Cronies from The National Institutes of Health | The Gateway Pundit

    April 2, 2025

    Biden Withdraws Plan to Cancel Student Loan Debt For 38 Million Americans, Blames “Operational Challenges” | The Gateway Pundit

    December 22, 2024

    ‘The Gulf of America’? Here’s What Mexicans and Cubans Think.

    January 28, 2025

    Watch: Penguins teammates set NHL record with OT winner

    February 28, 2025
    Categories
    • Entertainment News
    • Latest News
    • Politics
    • Sports
    • Tech News
    • Travel
    • Trending News
    • World Economy
    • World News
    • Privacy Policy
    • Disclaimer
    • Terms & Conditions
    • About us
    • Contact us
    Copyright © 2024 Newsstudy.xyz All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.