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

In May 2015, it suddenly occurred to me that it could be useful for many investors if I were to collect important historical facts and figures about Singapore’s stock market and present them in a single article.

This thought of mine eventually became an article I published on 29 May 2015 titled 6 Things You Have To Know About Singapore’s Stock Market. In the article, I wrote that it is “a work in progress, something which I’d update whenever I come across new information.”

As time passed, I’ve managed to find many new facts to bring the total count to 17. Here they are:

I had recently found out something really interesting about Singapore’s stock market and thought that it’s worthy of inclusion into the list. But before I share it, I would like to address a concern some of you may have: Is there any value at all in looking at history?

Yes, there is. A former Fool, Morgan Housel, once wrote: “So much of doing well in the stock market comes down to knowing what to expect.” And, it is precisely knowledge of stock market history that helps us know what to expect.

With that, here’s the 18th fact:

18. Elephants in Singapore’s stock market can jump too

There’s a saying in the stock market that ‘Elephants can’t jump.’ It’s used to refer to the idea that companies with big market capitalisations tend not to give their investors big returns. But, that’s not what the data says about stocks in Singapore.

Of the 707 entities with a primary listing in Singapore’s stock market that is in S&P Global Market Intelligence’s database, here’s what I found:

  • Of the 707 entities, 132 of them had generated a total return of at least 100% in the five years ended 23 December 2016. A total return of 100% equates to a compound annual return of 15%, which is very respectable. (The total return takes into account gains from reinvested dividends.)
  • Only 11 companies/trusts from the aforementioned 132 had a market capitalisation of over S$1 billion back in 23 December 2011. Some of the 11 are Suntec Real Estate Investment Trust (SGX: T82U), ComfortDelGro Corporation Ltd (SGX: C52), and Mapletree Commercial Trust (SGX: N2IU).
  • Of the 707 Singapore-listed entities I studied, only 69 of them had a market cap of more than S$1 billion back in 23 December 2011. This means that the percentage of large companies that have doubled in value or more in the five years ended 23 December 2016 is only 15.9% (11 divided by 69). But, the percentage of small companies that have doubled in value or more is only slightly higher at just 19.0% (121 divided by 638).

Turns out, the odds of finding solid winners from big companies in Singapore’s stock market is pretty similar to the odds of finding solid winners amongst small companies. Elephants can jump!

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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 company mentioned.