AMA Investment Moats
Asked by Anonymous
Updated on 18 Apr 2019
Interested to know your thoughts when it comes to recent tech listings in HKSE and NASDAQ
Generally it's mostly because of the fact that Singapore's investor market doesn't seem to be putting a fair valuation into tech companies, or many new value firms - high growth potential companies that are accompanied with higher risks as compared to the mainstays of the STI or the current listings. If we look at the number of major tech companies in the STI, we are only really talking about Venture Corp - the rest in the machinary and semi conductor business, like AEM holdings, are not a component of the STI as their market cap is not large enough.Singapore's exchange favours heavily on our financial services industry like banks.
As a result, Singapore has more delistings than listings nowadays, we have a shrinking market cap in our exchange as well... I think we won't be seeing much exciting IPOs in the near future. But that's alright, because Singapore has become a niche market for wealth accumulation with strong consistent dividend yeild stocks. It is essentially because it is not exciting that certain people like it - the predictableness of the stock allows one to much more easily plan for one's retirement plan for example.
We've lost the race against HK a long long time ago, and we're starting to drop off against the emerging economies as well, so as to whether any new exciting companies would want to raise equity in SG, my honest opinion is no. Not unless Singapore's investor base increases volume in trades, and also perhaps see more value in investing in growth stocks as opposed to the traditional blue chips.
I don't know what is your reason to think like that.
The only thing going that can affect SGX is G20 meeting and the decision between Mr. XI Xing Ping and Mr. Trump.
As Singapore is the country based mostly on its trading business, therefore relations between China and The US should be better for the near future.
Otherwise, Singapore is not a bad listing place for IPO companies. Its just my opinion as you asked.
For more news and SGX market, you can learn from Multi Management Future Solution
Hi this is a tough question to answer. I think is a domino effect. They tried to make it less speculative. The owners think their share price forever cannot trade at a good valuation, in comparison to Hong Kong. So they delist it.
The problem for them is that there isn't much local businesses to list. good business stay private because they are so cash flowing, good business gets taken private. what is left are the goreng businesses or those that needs the visibility.