SINGAPORE - A new mandate to govern Singapore during the pandemic can bode well for the nascent rebound in the nation's US383 billion stock market.
Singapore equities have recovered more than a third of coronavirus-induced losses amid government stimulus and a reopening of the economy, and analysts are expecting the winner of the election on July 10 to take more steps in the same direction. While still a laggard in the region this year, the Straits Times Index is projected to rise about 12 per cent over the next 12 months, according to analysts surveyed by Bloomberg.
Singapore, which has more than 44,000 confirmed cases of the virus, has entered the second phase of its three-stage reopening, with authorities assessing the infection situation to be under control. The government has pledged $93 billion in total virus relief, or 19.2 per cent of gross domestic product, and Fidelity International believes the city-state's stocks may perform better than emerging Asian markets because of the scale of fiscal support.