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MARK TO MARKET

Corporate governance gripes may fade if chronic undervaluation of stocks is addressed

If there is no upside to being listed, companies will naturally resent the cost and effort of maintaining their listed status

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Ben Paul

Ben Paul

Published Mon, Nov 6, 2023 · 05:00 AM
    • While regulators and experts in the field often focus on the minutiae of rules and controls that guide the behaviour of companies, ordinary investors often react to the behaviour itself.
    • While regulators and experts in the field often focus on the minutiae of rules and controls that guide the behaviour of companies, ordinary investors often react to the behaviour itself. PHOTO: BT FILE

    THIS column received a lot of feedback when it said three weeks ago that Singapore is losing listings because the market has performed poorly, and many stocks are trading at low valuations.

    Nobody disagreed, of course. The weak long-term performance of the Straits Times Index is obvious, and the trend of Singapore companies, large and small, choosing to list overseas continues to make headlines – and even drew a question in Parliament last month.

    Yet, readers of this column had varying theories on why Singapore stocks have not delivered better returns, and differing views on what it may take to restore the vibrancy of the local market.

    BT CorrespondentsSingapore stock marketSingapore StocksIPOTech IPOCorporate governance

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