Can Catalist continue outperforming?

DESPITE last week's correction, the Straits Times Index is still 5.5 per cent up for 2017 which by any measure is impressive as it makes the Singapore market one of the region's best performers. However, even more impressive and perhaps less noticed is that the FTSE ST Catalist Index has risen 12.7 per cent since the start of the year - more than double the STI's gain.

Volume has also increased - last week, traded volume in stocks priced below S$0.50 surged, pushing daily totals regularly above 2.5 billion units. The rise in prices amid improved volume begs the natural question - can this outperformance continue?

For the sake of those invested in Catalist companies and for listing aspirants of which there were rumoured to be many this year, hopefully it will. But for punters who might have noticed the second board's upward thrust these past few weeks and are looking to try their luck, a few cautionary words are necessary.