MENU

3 Things You Need To Know About the Singapore Share Market Today

Welcome to Monday! Here are three things about Singapore’s share market you might want to look at today and over the rest of the week as you enjoy the upcoming New Year.

1. We’re in the final stretches of 2014 and you can be sure that the financial media would be flooding the pages with outlooks and predictions for 2015 that market pundits might have. Those forecasts might sound convincing and logical, but there are very good reasons why we should take such predictions with a pinch (maybe a ladle instead) of salt. I’ve dug into the subject recently, so check it out here.

2. The topic of oil prices is still very much at the forefront of investors’ attention around the world. In Singapore, it’s also an important thing to note given that the price of the commodity exerts a great influence on the health of the businesses of some 54 shares listed here that are involved with the oil & gas industry (they consist of the drillers, support services providers, and rig builders). Within that group, some of the largest companies include the pair of rig builders Keppel Corporation Limited (SGX: BN4) and Sembcorp Marine Ltd (SGX: S51).

With the price of oil currently sitting nearly half of where it was back in June this year, the two aforementioned shares have fallen by 17% and 20%, respectively, in the same duration even as the broader market, represented by the SPDR STI ETF (SGX: ES3), has gained 1.5%. The SPDR STI ETF is an exchange-traded fund which tracks Singapore’s market barometer, the Straits Times Index (SGX: ^STI).

The sharp declines in oil-related stocks – with Keppel and Sembcorp Marine being great examples – might attract bargain hunters. But, would investors be scooping up great deals or would they actually be trying to catch painful falling knives? There are no clear cut answers to this question, but investors can still glean some useful insight about the future by drawing lessons from the past. Jump in here to find out what the history of oil can teach us about the future of oil stocks.

3. “Investors are selling stocks in droves during market panics” is one of those things that are accepted as conventional wisdom in the financial markets. I used to think so too. But lately, I’ve come across persuasive arguments that suggest that the majority of investors are actually not dumping stocks when the market swoons. For more on the topic and what it can mean for our investing activity, see here.

To learn more about investing and to keep up to date on the latest financial and stock market news, sign up for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore. Also, like us on Facebook to follow our latest hot articles.

The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Chong Ser Jing doesn't own shares in any company mentioned.