SGX – The truth is out
It is reported, finally, in the ST that all is not well in the stock market. For a particular month, many remisiers were earning less than $1000 in commission. This is nothing better than the cleaners in the foodcourt. And in a normal month, many are raking less than $2000. What are the implications?
It is not simply a dying profession for the remisiers. The broking houses need the commission to pay its staff or they too will have to close shop. The green eye monster has done its job well to kill this industry that once was a roaring business and supporting many other businesses in one way or another. The drastic changes in turning a stock market into a casino drove the final nail into the coffin.
The volume of trading appears to be high but simply fictitious in a way, generated by computers for brokerages or trading houses, house trades that bear no commission. The real participation of traders, retail and institutions too is dwindling and drying up.
The state of health of the market is best seen by good stocks being delisted as their real values are higher than the stock values in the market. It thus does not make sense for good companies to waste their time and paying fees to be listed. And with so many penny stocks, 1c or less than 1c stocks in the main board, it simply says something is embarrassingly wrong.
Surely the people responsible for ensuring a healthy and viable stock market know what is going wrong and how to put it right. They are not paid in the millions for nothing. Once the stock market is crippled, with remisiers and supporting staff quitting the industry, with brokerages shrinking and folding up, the damage is very difficult to repair. There will be a loss of confidence and a fleeing of funds. The offices in the financial district could go empty and rentals will slide as well.
The job loss in the industry is insignificant to the demise of a stock market and the finance industry. Make no mistake about it. The numbers don’t lie. The market and the associated businesses are going kaput while millions are being paid and there is still no light at the end of the tunnel.