Wary investors dodge Singaporean assets as SGX weakness intensifies

They’re picking Asian regional assets instead.

Cautious investors are beginning to shy away from regional assets on back of a more pessimistic view for both the global economy and the local bourse.

The half-yearly J.P. Morgan Investor Confidence Index showed that the proportion of investors who choose Singapore asset classes dipped to 53%, down by seven percentage points from the 60% recorded in the June index.

Consequently, the number of respondents who pick Asian regional assets climbed four percentage points to 32%, while the proportion of respondents who choose to invest in Asian single country markets inched up by two percentage points to 23%.

Almost a quarter of respondents, or 21% of investors, expect the STI to decline within the next six months.

Given all the concerns about the economy and the stock market, there was a slight increase in the proportion of investors who are going for capital preservation in their investment objectives –from 41% to 46%.

Fewer respondents have also cited capital growth as a key objective: just over a third, or 39%, compared to 44% previously. Some 46% are now aiming to generate a stable income stream and achieve investment return to match inflation, against 41% six months earlier. 

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