Does the "January Effect" apply to the Singapore market?

I will just add on and share about some hypotheses on why people think the January Effect exists. Do note that the January Effect has been criticised heavily and is controversial.

1. There could be a drop in price in December when investors because investors harvest tax-losses so that they can offset realised capital gains.

2. After receiving their annual bonuses, they have more capital to invest

3. Some investors use the New Year as a way to start on a new investment program.

4. A sell-off over at the year end could also prompt investors to purchase more stocks

Hi there! Just for others who are unfamiliar with the January effect, it is the theory that there is a seasonal increase in the prices of company shares during the first month of the year, the rationale behind this is that markets are inefficient and as such experience seasonal anomalies. According to an analysis by Dollars & Sense, there is no evidence of january effect but rather a reversal was observed.