Singapore beats Thailand in being Asia’s worst stock market this year

Singapore has outdone Thailand as Asia’s worst stock market in terms of share prices amid uncertainties of the US election and the worsening pandemic in the West, overtaking Thailand which held the title previously.

The Straits Times Index fell about one per cent on October 30, taking the 2020 decline so far to 25 per cent, compared with a fractionally smaller loss for Thailand’s SET index, Bloomberg News wrote.

Over the past week, the city-state’s main stock index was down about 4.3 per cent.

A recovery in the Southeast Asian nation’s stocks from the market plunge triggered by the pandemic has been hampered by the economy’s integration with global trade and supply chains, and a lack of technology shares in the index.

More than 80 per cent of Singapore’s benchmark index is made up of cyclical equities, the most among regional peers. A resurgence in coronavirus cases in the US and Europe and uncertainty surrounding stimulus in the US are expected to limit gains in the near term.

“Singapore is particularly sensitive to global risk-off sentiment, and risk appetite has worsened from the resurgence in virus cases and expectations of a slow pace of economic recovery,” Jingyi Pan, a strategist at IG Asia, told Bloomberg News, noting that some of the virus-affected regions were Singapore’s key trading partners.

Singapore Airlines’ stock dives 46 per cent

Singapore Airlines and transportation company ComfortDelGro are the worst performers on the index this year so far, down 46 per cent and 42 per cent, respectively, as the pandemic battered travel and forced people to stay home. A gloomy outlook for tourism could further limit the stock market’s performance.

That said, current valuations are proving attractive for some as the Straits Times Index trades at 13 times forecast earnings for the next year, in line with its ten-year average. In comparison, the MSCI Asia Pacific Index is trading at a multiple of 16 times, much higher than its historical average of 13 times.



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Singapore has outdone Thailand as Asia’s worst stock market in terms of share prices amid uncertainties of the US election and the worsening pandemic in the West, overtaking Thailand which held the title previously. The Straits Times Index fell about one per cent on October 30, taking the 2020 decline so far to 25 per cent, compared with a fractionally smaller loss for Thailand’s SET index, Bloomberg News wrote. Over the past week, the city-state’s main stock index was down about 4.3 per cent. A recovery in the Southeast Asian nation’s stocks from the market plunge triggered by the pandemic...

Singapore has outdone Thailand as Asia’s worst stock market in terms of share prices amid uncertainties of the US election and the worsening pandemic in the West, overtaking Thailand which held the title previously.

The Straits Times Index fell about one per cent on October 30, taking the 2020 decline so far to 25 per cent, compared with a fractionally smaller loss for Thailand’s SET index, Bloomberg News wrote.

Over the past week, the city-state’s main stock index was down about 4.3 per cent.

A recovery in the Southeast Asian nation’s stocks from the market plunge triggered by the pandemic has been hampered by the economy’s integration with global trade and supply chains, and a lack of technology shares in the index.

More than 80 per cent of Singapore’s benchmark index is made up of cyclical equities, the most among regional peers. A resurgence in coronavirus cases in the US and Europe and uncertainty surrounding stimulus in the US are expected to limit gains in the near term.

“Singapore is particularly sensitive to global risk-off sentiment, and risk appetite has worsened from the resurgence in virus cases and expectations of a slow pace of economic recovery,” Jingyi Pan, a strategist at IG Asia, told Bloomberg News, noting that some of the virus-affected regions were Singapore’s key trading partners.

Singapore Airlines’ stock dives 46 per cent

Singapore Airlines and transportation company ComfortDelGro are the worst performers on the index this year so far, down 46 per cent and 42 per cent, respectively, as the pandemic battered travel and forced people to stay home. A gloomy outlook for tourism could further limit the stock market’s performance.

That said, current valuations are proving attractive for some as the Straits Times Index trades at 13 times forecast earnings for the next year, in line with its ten-year average. In comparison, the MSCI Asia Pacific Index is trading at a multiple of 16 times, much higher than its historical average of 13 times.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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