The market needs fresh breadth and depth beyond the usual counters

WHEN it comes to measures to improve interest in the local stock market, most observers would agree that what is needed are quality instruments and listings that expand the depth and breadth of the market, and can generate wider interest beyond the present concentration on just banks, property, the Jardine group and Reits.

Observers also say that the penny stock crash of October 2013 has severely dented confidence within the ranks of retail investors, leading them to abandon local stocks in droves. As a result, the authorities have been urged to do their utmost to restore confidence as quickly as possible. A third suggestion is for the government to start investing its Central Provident Fund (CPF) reserves in the local market in order to attract liquidity and more institutional investors ("It's time to consider injecting CPF capital into the Singapore bourse", The Business Times, Nov 30).

The writer points out that one reason Australia is attracting technology firms from South-east Asia, Israel and Silicon Valley is that its market is supported by its US$2 trillion superannuation pool; pension funds own nearly half of all shares on issue in Australian equities in 2018.