Will the Singapore Stock Market Continuing to Show Signs of Growth?
May 15, 2017

The Singapore Stock Market continues to show robust signs of growth. Q1 of the year can often be unpredictable and loss limiting for many investors, but Q1 growth in Singapore has certainly been robust, presenting a number of opportunities for investors and traders alike.

For four straight sessions now, the stock market in Singapore has continued to climb higher. By the end of April, it had risen by 35 points (equal to 1.1 per cent) during this time. As a result, the Straits Times Index sits just under the 3,165-point plateau. But, will this growth continue throughout May?

What has Caused this Positivity?

Overall, there seems to be very few signs of the markets slowing down in Singapore, and traders are upbeat as a result. Much of this positivity in the markets stems from recent good news on earnings and a continued support for crude oil prices.

Much of this news has forced the European and U.S. markets upwards, and the Asian markets are now widely tipped to follow this lead over the coming weeks.

Is it Likely to Continue?

The economic news in Singapore currently looks good, with further announcements this month likely to act as a barometer for whether this will continue over the coming months.

Recently, the country’s Commerce Department announced that the number of new homes built in the country had increased in March. Alongside this, there has also been a bigger than expected pullback in customer confidence in April, which makes higher levels of customer spending in the coming months increasingly likely, something that’s great news for investors.

In addition to this, it appears as though a great amount of buying interest has been generated in reaction to upbeat earnings. This has included a number of well-known companies, such as DuPont, Caterpillar and McDonald’s.

What Does this Mean for Investors?

For investors currently trading on the markets, this certainly appears to be good news, as it means that a number of opportunities are likely to present themselves.

2016 was a year of consolidation for many investors, as Brexit and the election of Donald Trump meant that many were forced to either turn towards safe haven assets such as gold, or diversify their position to leverage against potential risks.

However, with economies across the world now rebounding from this uncertainty (pending the result of Britain’s ongoing election), a number of investment opportunities are likely to present themselves.

This is true not just in Singapore (as shown above), but around the globe, too. For example, in Wall Street, we’re seeing stocks grow higher currently, while the NASDAQ and the Dow both continue to climb further.

If you’re an investor or trader, this means that now may be the time to focus your attention towards the markets in Singapore. Many of these trends will likely cross the ocean, and by monitoring now, you’ll be best placed to spot them before others do, helping to maximise your profits.

by Contributor