Singapore market resilient in H1

His remarks in his half-year briefing addressed the perception that SGX is stagnant and losing its shine as a first-rate capital market platform in Asia.
“The market is ultimately driven by events and activities, macro or company-specific,” he said.
However, Singapore continues to do well and to reward investors, he said.
About US$7.3 billion (Bt258 billion) of dividends will have been paid out by Singapore stocks in the first half of this year.
The Strait Times Index (STI) has sported a dividend yield rate of 4 per cent – above the Nikkei’s 2 per cent and 2.1 per cent in Shanghai and on a par with the Hang Seng’s 4.1 per cent.
In terms of total returns – price gain plus dividend – the STI was down 1.7 per cent in the first half, but the fall was far less than the Nikkei’s 5.7 per cent, Hang Seng’s 8.3 per cent and Shanghai Composite’s 23.2 per cent.
The Singapore market has also been less volatile. The STI volatility – fluctuation in returns – has been 16 per cent in this half. It was 30 per cent for the Shanghai Composite, 28 per cent for the Nikkei and 21 per cent for the Hang Seng.
“We saw how this played out last Friday, when Singapore was down roughly 2 per cent and Nikkei was down 8.5 per cent,” Chew said, referring to the limited impact on the STI from British citizens’ vote to exit the European Union.
And while Brexit has plunged the financial world into further uncertainty, the fundamentals of Asia’s growing middle class and the need for services and infrastructure remain in the SGX’s favour, partly because of its reputation as a hub for listings of real estate investment trusts (REITs) and business trusts.
“There’s demand for capital, and we have the platforms for both wholesale and retail opportunities. “