Singapore election will have little impact on stock market

Unlike regional countries where election results have investment implications for politically-linked stocks, the investment implications in Singapore are more spurious, says CIMB.

In four out of the last six elections, market reactions were muted. The exceptions were in 2001 and 2006. In the month immediately after the elections, the FSSTI went up by 25% after 2001 but fell by 9% in 2006.

The initial thought was to link 201 performance with the PAP's strong showing but that argument is flawed. The 2001 election happened in Nov 01, two months after 911 when markets had fallen significantly post-911.

The strong market showing in 2001 post-elections only reflected a concerted global equity market rebound during that period. Likewise, a weak market in 2006 post-elections was merely reflective of a period of profit-taking after three consecutive years of bull market, prior to the 2006 election.

CIMB perceives global issues as more important for the Singapore stock market in 2011.

The five main themes are:

1. Rising energy costs
2. Inflation
3. Sovereign risks
4. Singapore as an alternative tourism hub
5. Singapore as a magnet for investments

Also Read

Mapletree successfully closes Japan logistics fund

Osome raises $22.91m to boost profitability

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit