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01-01-2011, 08:22 AM
When I read such news, I can't help but wonder if this is a good thing? 
Jan 1, 2011
Value of SGX firms at record year-end high
Total value of listed firms on local bourse surpasses 2007 peak
By Jonathan Kwok
THE total value of all companies listed on the Singapore Exchange (SGX) is at a record end-of-year high thanks to the strongly recovering market and economy.
At the closing bell yesterday at noon, an early finish ahead of New Year, the value of SGX listed companies had eclipsed the previous record Dec 31 high back in 2007, prior to the financial crisis.
The market value, also known as the market capitalisation, of all SGX firms at yesterday's close was $846.1 billion. This beat the $797.8 billion on Dec 31, 2007, at the end of the previous boom before the recession battered the market.
The market capitalisation of a firm is calculated by multiplying the current share price by the total number of shares.
Observers regard the new record as testament to the stock market's health and and a reflection of how far the recovery has come since grim periods of 2008 and 2009 when the crisis was at its darkest.
The record figure was aided by the extra corporate activity spurred by the rebound including new listings on SGX and the sale of new shares to existing shareholders, known as rights issues.
The market's total value of $846.1 billion is also 23 per cent higher than 2009's $689.8 billion. Shares enjoyed a mostly uninterrupted rise throughout 2010.
Still there was a blip around mid-year as the debt woes of euro zone countries raised questions about whether the global economy would slip back into recession.
The benchmark Straits Times Index (STI) closed at 3,190.04 points yesterday, a gain of 10.1 per cent on the year.
Nomura's South-east Asia head of equity research, Mr Lim Jit Soon, says the 30 STI component stocks made up a large majority of the entire bourse's market value. Rises in these blue chips had contributed significantly to the record high.
The market was helped substantially by the listing of British insurance giant Prudential in May, as well as October's listing of Global Logistic Properties (GLP) and Mapletree Industrial Trust (MIT). Yesterday's figures show Prudential added $33.7 billion to Singapore's market cap, while GLP added $9.7 billion and MIT contributed $1.6 billion.
The top blue-chip performer for the year was Genting Singapore, whose market value surged 76 per cent to $26.7 billion as its share price jumped. The casino operator's integrated resort, Resorts World Sentosa, has surpassed even the most optimistic expectations, spurring upgrades from market analysts and ramped-up investor interest. This helped Genting jump two places to No. 9 in the league of the bourse's largest companies.
SingTel is still the bourse's largest company, with a market value of $48.6 billion down 2 per cent from 2009 after SingTel's price dipped slightly over the year.
In the No. 2 spot was Jardine Strategic Holdings, then sister stock Jardine Matheson. They are trading near all-time highs.
The Jardine stocks overtook palm oil giant Wilmar International, which lost 12 per cent in market value to $36 billion. Its share price has dipped in the past two months after a large drop in third quarter profits and after investors reacted coolly to its forays into the property business.
DBS Group Holdings and United Overseas Bank also fell in value. But OCBC Bank gained 12 per cent to $33 billion.
Sias Research vice-president Roger Tan said the bourse's market value will grow further this year, with potential new listings and funds flowing here from developed countries. He also expects local investors to jump into the market in greater numbers as inflation rises.
jonkwok@sph.com.sg
Jan 1, 2011
Value of SGX firms at record year-end high
Total value of listed firms on local bourse surpasses 2007 peak
By Jonathan Kwok
THE total value of all companies listed on the Singapore Exchange (SGX) is at a record end-of-year high thanks to the strongly recovering market and economy.
At the closing bell yesterday at noon, an early finish ahead of New Year, the value of SGX listed companies had eclipsed the previous record Dec 31 high back in 2007, prior to the financial crisis.
The market value, also known as the market capitalisation, of all SGX firms at yesterday's close was $846.1 billion. This beat the $797.8 billion on Dec 31, 2007, at the end of the previous boom before the recession battered the market.
The market capitalisation of a firm is calculated by multiplying the current share price by the total number of shares.
Observers regard the new record as testament to the stock market's health and and a reflection of how far the recovery has come since grim periods of 2008 and 2009 when the crisis was at its darkest.
The record figure was aided by the extra corporate activity spurred by the rebound including new listings on SGX and the sale of new shares to existing shareholders, known as rights issues.
The market's total value of $846.1 billion is also 23 per cent higher than 2009's $689.8 billion. Shares enjoyed a mostly uninterrupted rise throughout 2010.
Still there was a blip around mid-year as the debt woes of euro zone countries raised questions about whether the global economy would slip back into recession.
The benchmark Straits Times Index (STI) closed at 3,190.04 points yesterday, a gain of 10.1 per cent on the year.
Nomura's South-east Asia head of equity research, Mr Lim Jit Soon, says the 30 STI component stocks made up a large majority of the entire bourse's market value. Rises in these blue chips had contributed significantly to the record high.
The market was helped substantially by the listing of British insurance giant Prudential in May, as well as October's listing of Global Logistic Properties (GLP) and Mapletree Industrial Trust (MIT). Yesterday's figures show Prudential added $33.7 billion to Singapore's market cap, while GLP added $9.7 billion and MIT contributed $1.6 billion.
The top blue-chip performer for the year was Genting Singapore, whose market value surged 76 per cent to $26.7 billion as its share price jumped. The casino operator's integrated resort, Resorts World Sentosa, has surpassed even the most optimistic expectations, spurring upgrades from market analysts and ramped-up investor interest. This helped Genting jump two places to No. 9 in the league of the bourse's largest companies.
SingTel is still the bourse's largest company, with a market value of $48.6 billion down 2 per cent from 2009 after SingTel's price dipped slightly over the year.
In the No. 2 spot was Jardine Strategic Holdings, then sister stock Jardine Matheson. They are trading near all-time highs.
The Jardine stocks overtook palm oil giant Wilmar International, which lost 12 per cent in market value to $36 billion. Its share price has dipped in the past two months after a large drop in third quarter profits and after investors reacted coolly to its forays into the property business.
DBS Group Holdings and United Overseas Bank also fell in value. But OCBC Bank gained 12 per cent to $33 billion.
Sias Research vice-president Roger Tan said the bourse's market value will grow further this year, with potential new listings and funds flowing here from developed countries. He also expects local investors to jump into the market in greater numbers as inflation rises.
jonkwok@sph.com.sg
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