Singapore stock market is strong and that fact causes investors from all meridians to invest in with a high level of safety.
By Gorica Gligorijevic
Singapore stock market is healthy and that fact brings investors from all meridians. The reason is that Singapore’s market provides them to invest with a high level of trust.
According to the IMD World Competitiveness Rankings 2019, Singapore is rated as the world’s most competitive economy. In 2019, it rose from third place to the top. This progress was caused by educated professionals, excellent technological base, and, most important, advantageous tax policies.
The global investment community is observing Singapore for its trade and financial areas. According to some researches, this country could easily catch nearly a third of the world’s agri-commodity trade by 2025.
This success came due to geographical position, low tax rates, absence of corruption, experienced workforce, etc. Singapore stock market is the largest in Southeast Asia and works for more than 700 companies.
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Is the Singapore stock market is cheaper?
The Singapore stock market begins with the Singapore stock exchange or the SGX exchange. SGX Singapore is one of the 30 parts of the Straits Times Index (STI).
Singapore’s benchmark Straits Times Index (STI) didn’t avoid the global sell-off last year, but the STI kept better so, Singapore’s shares are still cheaper. According to leading wealth managers, they are extremely attractive.
This year, Singapore’s stock market delivered beautiful returns to investors. This can confirm major investors such as UBS Global Wealth Management and Citi Private Bank. If you take a dividend as a referent, Singapore ranks very high.
To show you the Singapore stock market is cheaper, let’s take a look at some data.
The STI’s average PE ratio from 1973 to 2010 was 16.9 but in 1973 it was 35, which was the historical highest. The lowest P/E ratio was in 2009, and the current P/E, since August, 16, the ratio of 10.3.
So, you can see that Singapore stocks are cheaper than average.
We can also use the other method. The net-stock number shows that there is a lot of net-stocks, more than usual, which lead us to conclude they are cheap right now. You know that when supply is bigger than demand…
Where to invest in Singapore?
Let’s say you want to buy Singapore stocks right now. Our suggestion is to find, for example, 10 – 15 cheapest shares and keep them to the next ranking. It is usually for one year. Of course, you shouldn’t buy any share just because it is cheap. The odds to hit the rotten are surprisingly high.
Traders-Paradise gives you a track to follow. We made some selection, but maybe you will pick different.
UOB-Kay Hian Holdings Limited with a market cap of 977.8 and a P/E ratio at 0.689 is a good choice. The further is SLB Development Ltd, market capitalization – 105.0, P/E ratio – 0.697. Or Sing Holdings Limited with a market cap 158.4 and with P/E ratio 0.899.
These are just three suggestions and criteria to employ when investing in the Singapore stock market. But you are the one who has to decide where to invest in. We are here to give you a hint.
The benefits of investing in the Singapore stock market
* open and free economy
* favorable tax rates
* excellent technological infrastructure
* high-skilled professionals
* favorable P/E ratio
* plenty of cheap net-stocks
But there are some risks involved.
Singapore’s economy depends on foreign trade. And, Singapore is deeply connected with China’s economy so the trade war between China and the US influences Singapore’s economy too.
If you want to invest in foreign markets, the Singapore stock market is one of the best. Singapore has succeeded to develop an excellent business-friendly atmosphere.