For years, cheerleaders of the sideways-swaying Straits Times Index (STI) would valiantly say that although Singapore stocks do not provide much capital appreciation, they offer better than average yields. And therefore, when total returns are measured, Singapore stocks, while boring, are not that shabby.
As the government unveils the second and final set of wide-ranging market-boosting measures on Nov 19, the wheels of fortune are starting to turn.
Capital allocated to buying local stocks will increase demand and liquidity. And when individual companies give assurances of better returns, that’s a better justification for more funds to be deployed.
