For stocks, just fact-checking may not be enough

ONE of the lessons of 2016 is the importance of fact-checking. Partly because of the proliferation of fake news but as we shall see later mainly because of confirmation bias, it is essential for spirited and informed public debate that facts be accurate and relevant.

To aspire to greater accuracy is, of course, noteworthy but in and of itself, it is not good enough. Looking at the correct numbers and trends can sometimes convey only part of the picture, one that would be a lot clearer and more meaningful if full and proper information is included. Nowhere is this more important than in the local stock market.

Consider, for example, the rising number of privatisations/delistings over the past 12 months. To critics of the Singapore Exchange (SGX), last year's "bumper" number of listed departures - 27 in total which commanded a combined market capitalisation of around S$15 billion - was yet another indication of how bad conditions are here and how unattractive an SGX listing has become.