Home >> Daily News >> Singapore News >> Capital Markets >> Singapore bourse expects low volumes
|25 December 2009
Singapore bourse expects low volumes
Trading activity on the local bourse has dwindled sharply, with daily volumes falling by almost one-third in the past two months as retail investors stay away, the Straits Times reported.
But stockbrokers are hopeful that the prospect of a January rally will entice investors back in a week or two.
“I am quite bullish about next year. The economy has started to pick up and with a slew of good news, investors will come flooding back to the market,” Phillip Securities managing director Loh Hoon Sun was quoted as telling the city state’s daily.
Research houses have also been very upbeat about corporate earnings, with investment banks such as UBS and Citigroup expecting the benchmark Straits Times Index to hit the 3,200 level next year.
But in recent weeks, the market's low trading volumes have worried many traders even as the benchmark Straits Times Index continued its upswing. It has gained 6 per cent since Oct 1 to hit levels not seen since August last year.
Analysts see the drop in investor appetite for stocks at a time when prices continue to head north as a strong bearish indicator.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below