Cause for concern: SGX headed for another sub-par year, SMCCA warns

The SGX will continue to regress.

The Small and Middle Capitalisation Companies Association (SMCCA) warned that the local bourse is headed for yet another sub-par year, as catalysts remain elusive while trading liquidity continues to remain depressed.

In a White Paper produced in collaboration with Voyage Research, SMCCA stated that in terms of trading liquidity, the SGX will continue its five-year downtrend.

“We have extended our earlier study of Trading Liquidity in the Singapore Stock Markets. Our analysis shows that there Singapore is in a downtrend over the last 5 years in terms of trading value. This is in contrast to Hong Kong and Thailand, which have improved their Trading Liquidity over the same period of time,” said Tan Choon Wee, President of SMCCA.

The report stated that the SGX’s outlook remains negative in 2015. The SMCCA also reiterated the need for a new catalyst to address the falling Trading Liquidity and revitalise the SGX. 

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