The city state’s equities have benefitted from economic and political stability, as well as government-led initiatives aimed at reviving a previously lacklustre market. In contrast, investor sentiment has soured towards Indonesia in recent months amid uncertainties over a potential equities reclassification to frontier markets, as well as credit rating downgrades by Fitch Ratings Inc and Moody’s Ratings.
(May 20): Singapore has taken over Indonesia as Southeast Asia’s largest stock market, signaling investors’ endorsement of the city state’s market reforms and their diminishing confidence in its neighbour’s economic management.
Singapore’s market capitalisation has climbed to US$645 billion ($827.11 billion), while that of Indonesia has fallen well over 30% from a peak in January to US$618 billion, according to data compiled by Bloomberg.
