Like it or not, I think the Singapore Exchange will be extending its trading hours, sooner or later. This despite the fuss remisiers and some market players are making in response to a reported mass dialgoue between SGX and its stakeholders earlier this month concerning the scrapping of the current lunch break, to make it one continuous session from opening to close.
I say go for it, SGX, no matter what the remisiers n like-minded but parochial thinking people say.
After all, didn't all sorts of dire nay-saying abound when the SGX predecessors decided to reopen the stock market on the 3rd day of Chinese New Year (in line with all other businesses), when it was the tradition for brokers to go back only on the fourth day? And despite all the gloom and doom, our stock market has gone from strength to strength since then.
In fact, why stop at scrapping the lunch break? SGX, under the new CEO, should be bolder. Why not make it 24/7 trading? That way anyone in the world can take a punt on the SGX in their own time zone. Also, no need to trouble the tradition-bound remisiers.
Since our SGX system is an order driven, order matching system and since any investor can trade on SGX via the Internet, I don’t see why the system shouldn’t be used to the max, instead of closing down for week-ends and the better part of every day. This is especially since SGX is going to invest another $250m to supe up the system even more…
As for the k-p-k-b behaviour, these grousers should note that since Jan 11, SGX has already extended its derivatives trading hours till 1am Singapore time the following day for contracts with T-plus-one sessions to accommodate growing international demand for Asian equity derivatives.
The longer trading hours enable traders to respond to market movements and manage their risks across global time zones, including after the close of European equity markets.
Contracts which enjoy the extended trading hours include the Nikkei 225, MSCI Taiwan, MSCI Singapore and S&P CNX Nifty (India) index futures.
With longer, if not 24/7, trading hours, volume is bound to rise, though by how much no one can say till it is put to the test. Also, vloume would depend on what products are available on SGX equities platform.
Asian exchanges, including Sout Korea and Taiwan, that have dropped their lunch-time trading breaks have seen daily volumes rise between 8 per cent and 15 per cent, observers say.
Critics of extended trading hours point to China and Hongkong which have shorter trading hours than Singapore but are among markets in the region enjoying the highest volumes.
Such critics however overlook the fact that China and Hongkong have a far larger critical mass of investors than most of the markets in the region. And markets that have longer hours and desirable products will take nibbles from markets with the critical mass but shorter trading hours. Geddit?
Showing posts with label stock markets. Show all posts
Showing posts with label stock markets. Show all posts
Monday, July 26, 2010
Monday, May 17, 2010
More doomsday scenario...
My broker just sent me a doomsday scenario for the rest of the month which she ripped off from dowjones.com:
"Weak U.S. stock futures suggest Singapore shares unlikely to turn around for rest of session. Whether prices fall further may hinge on how European markets open later. STI off 1.5% at 2813.41, with immediate support at 2800, followed by current month low of 2775. Outlook may not improve any time soon, says SIAS Research head Roger Tan; "with the World Cup coming in June 2010, we believe that we will continue to see a lackluster and directionless equity market for the rest of May 2010."
Wanna bet?
Didn't I say, in the post be4 this, that what goes up will come down? It's done so with a thud as of last Friday (May 14).
Now this despite the US1 trillion bucks to be injected into the Old World's various teethering economies so that the stitched together euro won't crumble like a piece of chalk from the cliffs of Dover.
The new, for which read, the overbought scenario this week is that worries abound about the effectiveness of the USD1 trillion bail out. Will it take too long to cobble together let alone disburse before the patient evaporates right be4 everyone's eyes, very much like an ice-carving apres a function.
Other worries is that to pay back the bail-out, European governments would have to go into austerity overdrive, cut spending and raise interest rates. Or if this doesn't pan out, there will be hyperinflation, further euro devaluation, possibly changes of governments, riots in the streets etc to help debt laden nations get out of repaying their debts at their true value...
Whatever the scenario, my prediction is, if the falls are swift and large, there will be a rebound. Hey oil is at its lowest levels for several weeks. Now, isn't that a reason for share prices to resume climbing, albeit up a rather slippery pole! :-D
"Weak U.S. stock futures suggest Singapore shares unlikely to turn around for rest of session. Whether prices fall further may hinge on how European markets open later. STI off 1.5% at 2813.41, with immediate support at 2800, followed by current month low of 2775. Outlook may not improve any time soon, says SIAS Research head Roger Tan; "with the World Cup coming in June 2010, we believe that we will continue to see a lackluster and directionless equity market for the rest of May 2010."
Wanna bet?
Didn't I say, in the post be4 this, that what goes up will come down? It's done so with a thud as of last Friday (May 14).
Now this despite the US1 trillion bucks to be injected into the Old World's various teethering economies so that the stitched together euro won't crumble like a piece of chalk from the cliffs of Dover.
The new, for which read, the overbought scenario this week is that worries abound about the effectiveness of the USD1 trillion bail out. Will it take too long to cobble together let alone disburse before the patient evaporates right be4 everyone's eyes, very much like an ice-carving apres a function.
Other worries is that to pay back the bail-out, European governments would have to go into austerity overdrive, cut spending and raise interest rates. Or if this doesn't pan out, there will be hyperinflation, further euro devaluation, possibly changes of governments, riots in the streets etc to help debt laden nations get out of repaying their debts at their true value...
Whatever the scenario, my prediction is, if the falls are swift and large, there will be a rebound. Hey oil is at its lowest levels for several weeks. Now, isn't that a reason for share prices to resume climbing, albeit up a rather slippery pole! :-D
Monday, May 10, 2010
Sell in May and go away?
Not on your Nelly...
Such adages were good for days when stock markets weren't global and no one can access the market once it's officially closed for the day or the week end.
Not any more when you can buy options, futures and every sort of derivatives you can think of on the market or around the market. Also, not any more when you don't need to talk to your stockbroker whether you want to buy or sell. Like Nike, you just do it via the Internet or intranet.
So, Singapore fell for five straight days last week, as did some of the major (read, influential) markets, it doesn't really need a USD1 trillion package from the Old World of Europe to ring fence the euro and Greece for share prices to pick up.
It and other markets that had been crumbling will rise because what falls must rise, and what has risen must fall. This is the law of people using spare cash earning almost zero interest rates to churn their portfolios.
So next time, when the markets are falling, no need to wait for experts or analysts to tell you the markets will rise beause of this or that. Ditto when the markets are galloping, no need to listen to those who warn of bubbles or unsustainability.
Such forecasts are simply no-brainers!
Such adages were good for days when stock markets weren't global and no one can access the market once it's officially closed for the day or the week end.
Not any more when you can buy options, futures and every sort of derivatives you can think of on the market or around the market. Also, not any more when you don't need to talk to your stockbroker whether you want to buy or sell. Like Nike, you just do it via the Internet or intranet.
So, Singapore fell for five straight days last week, as did some of the major (read, influential) markets, it doesn't really need a USD1 trillion package from the Old World of Europe to ring fence the euro and Greece for share prices to pick up.
It and other markets that had been crumbling will rise because what falls must rise, and what has risen must fall. This is the law of people using spare cash earning almost zero interest rates to churn their portfolios.
So next time, when the markets are falling, no need to wait for experts or analysts to tell you the markets will rise beause of this or that. Ditto when the markets are galloping, no need to listen to those who warn of bubbles or unsustainability.
Such forecasts are simply no-brainers!
Sunday, February 14, 2010
Capricorn effect? BS!
January has come and gone and we are mid-way through February. If any of the old stock market sages had been hoping for the Capricorn effect to save their over-optimistic forecasts from being exposed, they must be sorely disappointed.
January was a bad month for most stock markets, although "bad" is a relative word, because bad depends on when you got in. Because given the volatility, everyone and his aunt are trading for beer and pocket money. There have been some lucky souls who managed to make enough to have a few rounds of yusheng.
So if the Capricorn effect has gone with the wind, what about a pre-Chinese New Year rally? Again, it was more hope than reality, especially this year. Especially with China -- the fount of Chinese New Years -- deciding to tighten lending and then to turn on the screws some more just before the arrival of the Tiger.
Shall we then wait for the Chinese New Year rally when SGX reopens on Wednesday, Feb17? Will the Tiger come bounding in and chase out the dozy Bull which, where stock markets were concerned, was really more a sick cow than a bull..
I shan't hold my breath.
Still in the best tradition of sooth-sayers, I shall say SGX will have its ups and downs this year, and know that I can never be wrong :-D
January was a bad month for most stock markets, although "bad" is a relative word, because bad depends on when you got in. Because given the volatility, everyone and his aunt are trading for beer and pocket money. There have been some lucky souls who managed to make enough to have a few rounds of yusheng.
So if the Capricorn effect has gone with the wind, what about a pre-Chinese New Year rally? Again, it was more hope than reality, especially this year. Especially with China -- the fount of Chinese New Years -- deciding to tighten lending and then to turn on the screws some more just before the arrival of the Tiger.
Shall we then wait for the Chinese New Year rally when SGX reopens on Wednesday, Feb17? Will the Tiger come bounding in and chase out the dozy Bull which, where stock markets were concerned, was really more a sick cow than a bull..
I shan't hold my breath.
Still in the best tradition of sooth-sayers, I shall say SGX will have its ups and downs this year, and know that I can never be wrong :-D
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