Chart of the Day: This is the hard truth behind the stock market’s painful plunge

Three key factors are to blame.

Singapore’s stock market has seen better days, as it is now down by 21% from its recent peak over the last six months, and a triple threat of factors are to blame.

According to analysts from Bank of America Merrill Lynch, China’s slowdown, dim growth in the city-state’s immediate neighborhood and tighter foreign labor policies are hurting Singapore’s growth, mainly in manufacturing and exports.

“The STI has corrected by about 21% from the recent peak over 22 weeks. This is less that the 42% average seen in past recessions, with bear markets lasting an average 48 weeks,” Bank of America Merrill Lynch said.

Meanwhile, BofAML is quick to note that the current bear market is less severe than the previous tech recession in 2001 and the 1985 recession.

The magnitude and length of Singapore’s current dollar sell-off is also nowhere close to the Asian financial crisis, but is approaching the average seen during the past five recessions.

“Recessions accompanied by financial crisis (in the region or globally) saw more severe stock market falls, with bear markets lasting for 70 weeks or more,” they added.