Stock Market Basics in Singapore

Market Structure

The Singapore Exchange (SGX) stands as one of Asia's leading financial hubs, offering a diverse range of investment products. The market operates on a highly regulated platform that includes both the mainboard for established companies and Catalist for growth enterprises. Singapore's strategic location and robust financial infrastructure have attracted numerous international companies to list their securities here, making it a key gateway for investors seeking exposure to Asian markets. The exchange operates with a sophisticated trading system that supports various investment instruments, from equities to derivatives.

Investment Framework

Singapore's investment landscape is characterized by strong regulatory oversight and investor protection mechanisms. The Monetary Authority of Singapore (MAS) enforces strict guidelines to maintain market integrity, while the Central Provident Fund (CPF) Investment Scheme allows Singaporeans to invest their retirement savings in approved securities. Trading hours run from 900 AM to 500 PM, with a mid-day break, and the minimum lot size was reduced from 1,000 to 100 shares in 2015 to make investing more accessible for retail investors. The market also features real-time price information and sophisticated risk management tools.

Market Performance

Singapore's stock market has developed a reputation for stability and consistency, attracting both institutional and retail investors. The Straits Times Index (STI), comprising 30 of the largest and most liquid companies, serves as the market's primary benchmark. Key sectors driving market performance include banking (with institutions like DBS and OCBC), real estate investment trusts (REITs), and telecommunications. The market's strong correlation with regional economic growth and its status as a financial hub make it an important barometer for Southeast Asian economic health and investor sentiment.Shutdown123

 

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