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How to keep the Singapore market’s free-float market cap from falling further

Goola Warden
Goola Warden • 4 min read
How to keep the Singapore market’s free-float market cap from falling further
To offset the market's falling free float market cap, we need more stocks, more liquidity, higher free floats and prices. Photo: SGX
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Share buybacks, beloved by analysts but perhaps met with less enthusiasm from investors and shareholders, are viewed as a move to improve total shareholders’ return. As many investors have articulated, they prefer dividends. Be that as it may, share buybacks can be used as a tool for management to support the stock during volatile markets.

However, despite its seeming resilience, the Singapore market’s performance has been moribund compared to the markets of India and Japan. Even China’s A shares have rallied.

As a result, our market has dropped in weight compared to other Asian markets. MSCI says: “As part of the May 2024 Index Review, using prices as of April 19, which is the cutoff date for prices used for the calculation of market capitalisation as part of the index review, the weight of the MSCI Singapore Index in the MSCI World Index will be 0.34% compared to 0.36% before the rebalancing.”

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