MAS’ S$5 billion investment fund to lift undervalued, small-cap stocks: analysts
But they caution that success will hinge on how asset managers execute mandate and use resources
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[SINGAPORE] Market reaction to the appointment of the first three asset managers to tap Singapore’s S$5 billion Equity Market Development Programme (EQDP) on Monday (Jul 21) has been largely optimistic, with investors starting to plough into undervalued, small-cap stocks and driving up their value.
Luke Lim, managing director at brokerage Phillip Securities, said even before the deployment of EQDP, the market has have seen a major re-rating of SGX-listed small to mid-cap stocks.
“There is now a pool of liquidity that will invest in undervalued small to mid-cap stocks, thereby improv(ing) the price discovery of the entire sector,” he said.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
Near sell-out launches in March boost developer sales to 1,300 units after four slow months
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025
