- Following our Singapore Strategy report titled “Don’t waste a crisis!” dated 10 April 2025, markets have rebounded strongly, despite occasional sporadic minor corrections.
Is it much ado about nothing?
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- The recovery for the Singapore market was broad-based with gains for almost all sectors.
- The highest gain was recorded from the energy index, with stocks posting an average gain of 25.4% from the recent low on 7 April 2025.
- Financials, which included the banks, recovered 10%.
- Real estate regained 11.7%, while
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What has changed?
- A tariff war seems to have been averted as trade tensions eased following negotiations between the world’s two largest economies, US and China, to temporarily lower tariffs. This has also lowered the probability of a US recession. The knee-jerk reaction was buoyed by optimism that a global slowdown could be averted, and this will have wider implications for corporate earnings and growth.
- In Singapore, the political baton was successfully handed to the new 4th generation team at the recent election, with an overwhelming majority win of 65.6% for the ruling party – an improvement of 4.34% over the previous election in 2020. The ruling party also secured 87 out of 97 seats in Parliament. With this clear mandate, we believe that political stability and policy will continue. This will also provide businesses with the confidence that the investment climate here remains positive, as companies generally prefer to operate or invest in areas that are conducive to conducting their operations.
Singapore stock market – a safer haven.
- Read more at SGinvestors.io.
