SINGAPORE -Share in Singapore Exchange (SGX) fell 5.8% to $12.69 at the close of trading on February 14th.
A review group led by the Singapore Monetary Authority (MAS) has proposed measures that include tax incentives to attract more companies and fund managers in Singapore.
MAS did not further elaborate on the initial measures. Details will be shared on February 21st.
The measure was presented to Prime Minister Lawrence Wong and the Minister of Finance.
The review will also continue to function in the next set of measures to promote long-term development and sustainable growth of the stock market, which will be released in late 2025.
Noting that no further steps have been announced to revive the exchange, City Analyst Dan Yong-Hun said in a report on February 13 that SGX’s 12-month stock target from the previous $13.10 It was downgraded from 9% to $11.90.
He looks at the market disappointment in the first proposed measure and hopes for optimism that has promoted a 25% equity rallies in the six months since the review group was formed in August 2024.
The Minister of Finance and Vice-Chair of MAS Chi Hong Tat said on February 13 that the review group did not recommend that the Sovereign Wealth Fund GIC and the Central Provident Fund (CPF) require investment in local stocks. He said.
Explaining the rationale for this, Chi, who also chairs the review group, reiterated that “GIC’s mission is to maintain and strengthen the international purchasing power of Singapore’s reserves,” and that this approach He added that he believes it is not sustainable to use. .
He said GIC funding supports key national goals, including crisis preparation, budget contributions and CPF support. GIC can invest in Singaporean companies with a global presence, but that decision does not have a local share allocation order that could reduce overall returns.
Citi’s Tan recommends against the use of funds under GIC and CPF for domestic equities, a review group said, “The influx of turbocharged investments that could help with a broader market valuation.” We can reduce our hopes.”
In a report on February 13th, RHB analyst Shekhar Jaiswal said the volume of derivatives traded on SGX in January and total stocks were “significantly lower” than expected.
He expects this trend will continue for the remainder of SGX’s fiscal year despite an increase in trading activity in real estate investment trusts and stocks at Straits Times Index.
Jaiswal added that SGX’s revenue growth outlook depends on strong sentiment in the local stock market, increased new listings and favorable outcomes of ongoing reviews.
He maintains the SGX target rating at $12.80.
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