8 Things You Have To Know About Singapore’s Stock Market

Earlier this May, I had written an article titled 6 Things You Have To Know About Singapore’s Stock Market.

In it, I had shared six valuable pieces of historical data about Singapore’s stock market which can give us important context to interpret and understand whatever may happen to stocks in Singapore in the future.

Within the article, I also made it clear that it’d be a work in progress which will be updated whenever I come across new and useful information. In July, I found the seventh fact which you can find here.

I had discovered something new about Singapore’s market barometer, the Straits Times Index (SGX: ^STI), earlier this month and so, I thought now would be a good time to discuss the eight factoid about the market that you have to know.

(The first six things are given in the first link while the seventh is in the second link.)

8. Large daily declines can be quite common

There have been 5,812 trading days from the start of 1993 to 12 August 2015. Within that group of days, the Straits Times Index has seen its fair share of large daily losses.

Daily decline Number of days
2% or more 238
3% or more 90

Source: S&P Capital IQ

How is this information useful? It can act as a reminder for us to not panic if and when the Straits Times Index falls big in the future.

After all, Singapore’s market benchmark has more than doubled from 1,524 points at the start of 1993 to 3,061 on 12 August 2015 despite the occurrence of the sharp daily falls seen in the table above. If the gains from reinvested dividends had been factored in, the index’s annual return figure could even be reasonably bumped up by 2-3%.

That’s all I have when it comes to the latest update. Is there anything about the history of Singapore’s stock market that you’d like to know? Or, is there anything you’d like to discuss? Feel free to let me know through the comments section below!

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.