Even if it's different this time, efforts to rebuild trust in stocks must continue

SIXTEEN months ago in January 2015, 1,225 trading representatives (TRs) signed a petition addressed to the Finance Minister appealing for urgent measures to revive interest in the local stock market.

Some of the issues raised have since been addressed by the authorities, if not directly then indirectly. These include the setting up of independent committees for listing, new rules surrounding trading of sophisticated products and six-monthly updates for shareholders of long-suspended companies.

Yet, few would deny that conditions in the market have worsened in the intervening time - daily volume when the petition was written was around S$1.4 billion, today it regularly dips below S$1 billion (this week's average is under S$800 million). When the petition was sent, the Straits Times Index (STI) stood at 3,390 points; Wednesday's level of 2,766 means it has fallen 18 per cent since.