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

An idea popped into my head last May to collect important facts and figures about the history of Singapore’s stock market and present them in a single article.

But, is history really useful in investing? After all, billionaire investor Warren Buffett once said that “if past history was all there was to the game, the richest people would be librarians.”

Thing is, while history does have its limits in investing, it can still serve an incredibly important purpose. “So much of doing well in the stock market comes down to knowing what to expect,” my colleague Morgan Housel once wrote. And, it is precisely knowledge of stock market history that can help investors know what they can expect when they invest.

The aforementioned idea in my head eventually became an article I published on 29 May 2015 that’s titled 6 Things You Have To Know About Singapore’s Stock Market. In it, I wrote that it “will be a work in progress, something which I’d update whenever I come across new information.”

I have added seven more facts to my list since to bring the total fact-count to 13. You can see all the updates in here (the seventh)here (the eighth)here (the ninth)here (the 10th)here (the 11th), here (the 12th), and here (the 13th). Let’s look at the 14th factoid I had recently found:

14. There are plenty of big losers in the stock market in Singapore.

There are currently 813 equity listings in Singapore according to S&P Capital IQ. Of these, I tried to find stocks that had fulfilled both the following criteria:

  • Is down by at least 50% from its all-time high
  • Its all-time high had occurred before 1 January 2010

Turns out, some 41% of my universe of local stocks had both characteristics. What this tells me is that it can be very easy to invest in a stock that can deliver huge long-term – perhaps, even permanent – losses. As such, it may be way more important to learn how to avoid losers in the stock market than it is to find winners.

That's all I have for my latest update. If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

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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 companies mentioned.