Dear readers, I am not sure how many of you have read the local newspapers last week that carries some articles on how the Singapore stock markets can be boosted.
Some of the initiatives mentioned in the articles include the setting up of an ombudsman office to look into complaints and feedbacks concerning Singapore stocks from local investors, listing of some large companies like Changi Airport Group to boost the appeal of the Singapore stocks markets, etc and etc.
To be frank, I could relate to just how unexciting the Singapore stocks markets can be, just look at how given a period in recent years, the % increase in some overseas stock markets like the US versus the rather stagnant Singapore stocks markets.
The “redeeming factor” for Singapore stocks markets, as mentioned in one of the articles, is that at least our stock market is defensive! I would think this is a good way to convey our more unexciting Singapore stock markets!
To boost the Singapore stocks markets, it is always good to have a reference point.
Look no further than the Singapore Treasury Bills or even the Singapore Savings Bonds markets! There is so much interest in these products just from looking at the bid-to-cover ratio as well as the interest evident in the online forums.
Of course, some will say that such good interest in Treasury Bills and Singapore Savings Bonds is by virtue that these products carry one of the highest interest rates at lowest risks on town but I would argue that such great interest in these products is due to how the authorities have structured the market for these products.
Similarly for the Singapore stock markets, there is scope for the authorities to do more. I can sense recent efforts seem to be the introduction of more ETFs that replicate some index, some sectors, offering investors reduced risks as well as giving investors opportunities to invest in overseas stocks or their equivalents on our local bourse. I believe this is a good start but there is still some scope to inject more vibrancy in our small stock markets.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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