Global trends bode well for SGX

Singapore

INVESTORS' search for alpha and liquidity, as well as the stability and consistency of Singapore's capital market, are a few trends that bode well for the Singapore Exchange (SGX).

Chew Sutat, head of equities and fixed income at SGX, told The Business Times in an interview that the market outlook is promising for Singapore.

"There has been a lot of dislocations/misallocations in the capital markets,'' he said. Investors have been chasing US indices - collections of the largest publicly traded US companies - resulting in less capital allocated in smaller value stocks.

"Blind money" investment - where money flows to a subset of companies based not on fundamentals but on their inclusion in the index - is starting to shift with heightened market volatility and uncertainties. The money that had gone from East to West is starting to slowly move back, Mr Chew noted. Investors are starting to realise that US equities have become "crowded trades", with …