Singapore’s S&P 500 Index declined 5.3% in October

As the Straits Times Index maintained a total return of 3.5%.

The global recovery continues, but is uneven and weaker-than-expected, and downside risks have increased, noted Mr Tharman Shanmugaratnman, Deputy Prime Minister of Singapore and Minister for Finance in an IMF Communique over the weekend.

According to SGX, in the month-to-date, the S&P 500 Index has declined 5%, or 5.3% taking into account some marginal appreciation of the Singapore Dollar (SGD) to the US Dollar (USD). As of the open today, the Straits Times Index (STI) had booked half of the declines of the S&P 500 in the month so far. The STI has maintained a year-to-date gain of 3.5% taking into account this year’s dividend distributions.

The five most defensive performers in the STI over the first eight sessions of October were generated by ComfortDelGro, OCBC, Singapore Airlines, Singapore Press Holdings and StarHub.

Here’s more from SGX:

Together these five stocks averaged a 0.1% gain over the eight sessions compared to the 30 STI constituents averaging a 2.6% decline. This has brought the average year to date gain for the STI stocks to 4.3% and the three year average total return to 31.9%.The standard international currency gauge for the USD is the US Dollar Index. The Index has gained 7.0% since the end of June. However, the effect on the USD/SGD exchange rate has been less with the USD gaining 1.9% to the SGD over the timeframe.

The SGD exchange rate system that is operated by the MAS aims to mitigate the adverse effects of short-term volatility on the real economy, while at the same time ensuring that the exchange rate remains aligned with economic conditions and fundamentals. 

These economic fundamentals of Singapore include prudent fiscal policy, flexible product and factor markets, a sound financial system, and a robust domestic corporate sector. The Singapore Fixed Income Index (SFI) has generated a total return of 0.9% since the end of June. The government and corporate bond aspect of the Index have both gained by the same amount.