4/28/2014

SGX – Reality sets in

Jeremy Grant wrote ‘Singapore exchange losing out to regional competitors’ in the Financial Times on 23 Apr 14.
 

‘Singapore’s equity market is looking increasingly unloved. Last year the city-state’s stock exchange suffered the indignity of being overtaken in terms of trading volume by its Thai counterpart, knocking Singapore into second place in southeast Asia for the first time. More recently it was also overhauled by Japannext, a relatively small trading platform that competes with the Tokyo bourse.
 

This makes SGX, the Singapore exchange, Asia’s ninth-largest share market – a frustrating state of affairs for an exchange that prides itself on being “the Asian gateway” for investors in the region.
 

Singapore’s problems – a combination of low trading volume, or liquidity; relatively high transaction costs; and a dearth of big-ticket initial public offerings – were highlighted on Wednesday when SGX reported a 22 per cent fall in net profit for the third quarter….’
 

Is it surprising that the SGX is going down into the longkang as a failed stock exchange? People in the industry knew this long ago but the media has been hyping about how successful it has been with increasing volumes in derivatives and all kinds of shit except the real business of stock trading. And many who are supposed to be doing something to right the wrong are pretending to be Rip Van Winkles.
 

There have been a slew of measures rolled out by the SGX and every time it was touted to improve the trading volumes, improve liquidity, good for small investors, and the ridiculous no lunch break to extend trading hours for more volumes. We all know that it did not get better but worst.
 

So, how long would this myth of a fantastically successful stock market, the best managed in Asia, the financial centre that is doing roaring business going to go up in dust? When would the govt face the reality that things are in shit and the SGX is already in the intensive ward? This thing did not happen yesterday. The writings were on the wall a couple of years but everyone turned the other way. No one wants to know, no one wants to lift his little finger, no one wants to take responsibility but only prayed that the magician would continue to pull little rabbits out of his hat. Are there still rabbits left in the hat for the show to go on and everyone clapping for an encore?
 

Do they know what is happening, what is the cause of the dying stock market?

Kopi Level - Yellow

14 comments:

Anonymous said...

"When would the govt face the reality that things are in shit and the SGX is already in the intensive ward?"
RB

So? Will the strongest opposition party be ready to be the alternative and a better govt to clean up the shit in SGX, u tell me lah?

Anonymous said...

"Do they know what is happening, what is the cause of the dying stock market?"
RB

Just like many other failings, the PAP govt can afford the failing of a dying stock market.

Anonymous said...

Couldn't the same be said about Singapore generally? The screw-ups and the pretense that nothing is really wrong and nobody is at fault on the red dot.

Anonymous said...

RB, there is nothing wrong lar. I even make a $3000 profit in the last 5 years though I used to make $3000 in the good old day in one day. But time has changed so I try to make money elsewhere.

Anonymous said...

Many good blue chip companies are delisting from SGX like already delisted Pacific Breweries, going to be delisted Singapore Land and Capitalmall. Once upon a time good blue chip but now a fragmented F & N. SGX now only attract penny stock with minimum growth.

Matilah_Singapura said...

Too many GLCs lah. Kani nah, where got stock market dominated by a corporatised govt -- one of the biggest players in the economy?

If you have a good business idea, be careful. One morning you wake up and find that some GLC has been formed around your idea and now te govt is your biggest competitor with such huge resources that now you are irrelevant.

The big dicks of The State have to decide if they are private sector entrepreneurs, or part of the elected govt whose job it is to manage the cuntree. Cannot be both lah. Conflict of ineterst every which way lah...

The sheeple get the govt they deserve, and the collective attitude is CULTURAL. So if yew can get some lobang where yew can make plenty money with such ease, as a materialistic Singaporean yew will grab it all right? Why not?

Yew are the govt. But yew like to supplement yewr already hai (chau hai!) pay by playing big-time corporate capitalist by collecting multiple director's fees sitting on as many boards as possible. GLCs got many subsidiaries -- plenty of opportunity there for yew to milk the system like a hungry baby sucking its mama's tetek.

Govt sector makan the private sector. Yew are gone lah. Better get some boxes of tissue and start selling at the MRT lah.

b said...

Here is a list of the reasons Karl Marx gave as to why extreme capitalism will fail:

1. "Inevitability of monopolies, which eliminate competition and gouge consumers and works.

2. Demands for labor-saving machinery or cheap labour, which force unemployment and a more hostile proletariat.

3. Employers will tend to maximize profits by reducing labor expenses, thus creating a situation where workers will not have enough income to buy the goods produced, creating the contradiction of causing profits to fall.

4. Control of the state by the wealthy, the effect of which is passage of laws favoring themselves."

Capitalism works well like medicines. Most effective when applying it in moderation.

Anonymous said...

Wow ! Wow ! Wow !!!

Matilah_Singapura tok khong leh.

Kudos ! Salutes !!!

Anonymous said...

Why not list PAP as an IPO?
It should be a multi-billion dollar listing.

Anonymous said...

Why care about SGX ?

Care about survivals of yourself and the people.

Matilah_Singapura said...

@959:

>> Why care about SGX ? Care about survivals of yourself and the people.

Simple. Many people rely on returns on their capital, and the stock market has proven to be the #1 place for capitalist minded but average working and saving folks to derive RETURNS on their "excess capacity" aka "savings".

If you want to live in Singapore and enjoy a good life, with a decent standard of living -- which means foremost that your MATERIAL needs are met and that you have sufficient reserves for the unexpected events and less-than-prosperous times -- then you'd better have money to do so.

If you are going to rely on the govt to provide, you are going to get a very nasty surprise.

In previous times, only the connected and the wealthy could get into the stockmarket. However participating in the bourses has definitely become so egalitarian now, anyone with even a modest stake can seek out "profit" or returns on their capital.

Therefore it is extremely important that a cuntree's trading markets are sound. A significant portion of the wealth from individuals -- which collectively and ultimately impact the overall wealth of the nation -- depends on markets which are pure from manipulation and shenanigans. Of course because human nature being is as such, you are never going to get 100% pristine markets where the prices are "perfect", but at least with sound and well managed bourses, the average Joe, Jane and the kids have a decent shot at achieving something to perhaps increase their wealth.

Anonymous said...

Come on!
The Stock Markets make the rich richer and the poor poorer.

The stock markets have made many filthy million/billionaires, however millions have oso fallen victims to stock markets.
Btw, the stock markets are full of manipulators and therefore they can never be a clean places for everyone.

Let all stock markets go haywire, better if they kaput, starting with SGX.

Matilah_Singapura said...

Many people have the wrong idea of my moniker "Matilah Singapura". They incorrectly assume that I am cursing Singapore to death. Nothing can be further form the truth. I HEART (HOTEL) SINGAPORE -- it is one havoc place for exploiters of opportunity and greedy profiteers, like my goodself. Although I am very much "small time", I am very happy and LUCKY to be apart of the grinding capitalist machinery which makes Singapore awesome and rocking.

"Matilah Singapura" is a PREDICTION -- my prediction -- based on theory derived from factual observation and occasional testing, if you are religious you might call it a 'prophecy'. The crux of this theory is that Singaporeans are so damn terrible about looking after themselves and each other. In the latter case, they tend to treat each other with contempt and mistrust, and are ALWAYS trying to "beat" each other in some MINDLESS "competition" to prove themselves "better" than their neighbour, co-worker, associates etc.

Because of Singaporeans lack of consideration for each other, they put into power a Confucian government of authoritarian of elites and super talents thinking (quite wrongly) that Singaporeans and their cuntry have adopted "The Middle Way" to never-ending prosperity and good times.

...and so we have on going entertainment, as The Sheeple Of Singapore continue on their perennial quest on hilariously tragic self sabotage.

Small wonder why I have several good solid LAUGHS everyday at the antics of these adorable assholes and clownish cunts.

@1059:

Let all stock markets go haywire, better if they kaput, starting with SGX.

Here good readers is a prime example of a self sabotaging idiot local who doesn't understand Jack Schitt.

If the SGX goes kaput, there will be blood on the streets and pets and stray animals will be hunted and killed for food.

You'd better keep some soya sauce in reserve, because you won't be able to get any condiments to flavour your new diet of dog and cat meat...and we all know how Singaporeans love their food :-))

Anonymous said...

先死后生也.

After the Blood flow will come
the Renewal Of Life, start fresh
with a clean slate. This is the
Ultimate Cleansing of a dirty society.