This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
A broad overview sees the index largely thriving in a sideway trade for the majority of the year.
At a year-to-date (YTD) return of -0.5% as of 29 December 2016, the MSCI Singapore Free index sits in the middle of the pack on the Asian equities report card. This pales in comparison to the Straits Times Index’s (STI) near neutral level. Outperformers in the region include Thailand’s SETi and Indonesia’s JCI with more than 10% gains YTD. Meanwhile Asia’s bedrock, China, saw its indices slump. The Shanghai Composite Index and Shenzhen CSI 300 Index were both seen with double digit losses, unable to recover from the crash at the beginning of the year.
Slowing economic growth in Singapore, with 2016 full-year growth expected to arrive at approximately 1.4% year-on-year (YoY) down from 2.0% YoY in 2015, coupled with a series of uncertainties have casted a shadow on the local bourse.
Sectoral breakdown finds positive YTD returns in the majority of sectors with the exception of the industrials, evidently still hard-pressed by the weak global and regional trade conditions in the year. Diving into the industrials, one would find the marine and offshore (M&O) sector weighing the heaviest upon the overall index.