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

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

But, some of you might be thinking: Is history even useful? Of course, history has its limits in the world of investing. But, it can still help us know what to expect when we plonk our hard-earned cash into the market, which is something incredibly important. Like my colleague Morgan Housel once wrote, “So much of doing well in the stock market comes down to knowing what to expect.”

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

Over the past seven months, I have corralled more facts to bring the total fact-count to 14. You can check out all the updates below:

With that, let’s look at the 15th factoid I had found recently:

15. Stocks don’t necessarily rebound even after falling hard!

One of the last major crisis Singapore’s stock market faced was the Great Financial Crisis of 2007/09. During that episode, the Straits Times Index (SGX: ^STI) had fallen by over 60% from peak-to-trough, bottoming out at 1,455 points on 10 March 2009.

That big decline proved to have been a great investing opportunity as the index is today at 2,562 points, a nice 76% gain from the crisis-low even after the index had fallen by nearly 30% since April 2015.

But, here’s something interesting I found among the 566 Singapore-listed stocks that (1) was listed back on 10 March 2009 and (2) S&P Capital IQ has data on at the moment.

Within that group, there are actually 177 shares that are currently trading at a level at least 30% lower compared to where they were on 10 March 2009. In other words, more than 30% of my universe of stocks had failed to rebound from the crisis (in fact, they had lost big time) even when the market as a whole had recovered strongly.

When stocks fall hard, it may seem like we’re getting a bargain. But, it’s worth noting that not every stock which has suffered a steep decline is necessarily a good investing opportunity.

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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.