Economy and politics
Most important hub in Southeast Asia. Singapore is one of the richest countries in the world, but it has hardly any land or resources. The country is a city-state and thus the smallest state in Southeast Asia.
Singapore stands for economically free thinking, low taxes, low regulations and an independent policy. In addition, Singapore has banking secrecy, which all in all is very attractive for foreign investors and wealthy individuals. What Switzerland or the Cayman Islands offer can now also be found in the center of Southeast Asia.
The country also has one of the largest ports and goods handling centers in the entire region, which means that an enormous number of transport companies use this location from both an economic and geographical point of view. The peculiarity is that there are no import duties and the port is open to all nations.
The stock market in Singapore is very much characterized by asset management, which is related to the excellent tax environment. The leading index (Straits Times Index) comprises 50% financial stocks, which is due to the high capital inflows in recent years. Sectors such as industry or real estate represent another 35%, which means that technology or consumption is very poorly represented.
The largest companies
E-commerce replaces financial companies. Currently, the e-commerce and gaming company SEA Limited is at the top of the largest companies with a market capitalization of USD 100 billion. This is followed by the country's three largest banks. DBS, which is considered the most digital and advanced bank in Southeast Asia, OCBC and UOB.
Der Straits Times Index (STI)
One-sided weighting in the leading index. The STI comprises a total of the 30 largest companies from Singapore that are traded on the Singapore Exchange (SGX). To be included in the index, a company must be financially viable and have high liquidity.
Due to the stable financial position and high market capitalization of the banks, they are weighted at around 50% in the index, which of course does not lead to proper sector diversification. Furthermore, the industrial sector also occupies a decent place with just under 20%. Companies such as Keppel and Wilmar are represented here.
The real estate sector is also strongly represented. Companies like CapitalLand or Ascendas are leading rides in Singapore for both residential and commercial property management. With Singapore Telecommunications, a mobile phone provider is also weighted very high in the index, which is number one in numerous Asian countries.
Trading place and opening hours
Important trading center in Asia. The Singapore Exchange (SGX) emerged from a merger of two stock exchanges in 1999 and also became tradable as a stock in 2000, just like Nasdaq. The trading venue is one of the most important in Southeast Asia due to the high number of shares and derivatives listed.
With a market capitalization of USD 663 billion, SGX does not make it into the list of the largest stock exchanges, but it does make it to a remarkable size when you consider how small the state actually is.
The Singapore Stock Exchange opens at 3:00 am our time in Germany. Closes at 6:30 and then has a second trading period from 8:00 to 11:00. Many Asian exchanges have a break at lunchtime.