Singapore exchange struggles to grow as rivals thrive
Published on Apr 30, 2014 12:51 PM
SINGAPORE (AFP) - A dearth of big-name share listings of overseas firms and a multi-billion-dollar penny-stock crash have hampered the growth ambitions of Singapore's stock exchange as Asian rivals flourish, analysts say.
Singapore Exchange (SGX), the sole stock market operator in the city-state, on April 23 reported that net profits slumped 22.4 per cent year-on-year in March, as total securities trading volume fell 47 per cent in the same period.
That, market observers say, highlights the bourse's main problem - soft volumes, which make it less attractive for fresh share offerings from around Southeast Asia.
To compound its woes, sentiment was hit when three penny-stock companies - Asiasons Capital, LionGold Corp, and Blumont Group - suffered a rout in October that wiped around $8 billion from their value in two days after a huge rally.
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