Morgan Stanley has expressed optimism about Singapore’s equity market following the introduction of new measures aimed at enhancing market liquidity and valuations. The Monetary Authority of Singapore (MAS) has announced a $5b liquidity injection into actively managed funds investing in Singapore stocks, alongside a requirement for family offices with assets under management exceeding S$200m to invest S$50m in Singapore-listed equities.
The measures are expected to surprise the market positively, according to Morgan Stanley, which anticipates a broad-based positive reaction from investors. The bank described these steps as “bold and meaningful,” likely serving as catalysts for re-rating Singapore equities. The liquidity injection is seen as substantial, with the potential to attract further private capital and stimulate incremental investment flows.
Morgan Stanley also highlighted the political will behind these initiatives, suggesting that they are part of a broader strategy to solidify Singapore’s status as a global financial centre. The bank expects MAS to unveil additional measures by the end of the year, further strengthening the equity market ecosystem and potentially attracting new listings.
The introduction of these measures is seen as a critical move to revitalise Singapore’s stock market, enhancing trading liquidity and valuation multiples. This, in turn, could lead to increased job creation and capital formation, reinforcing Singapore’s position as a financial hub. Morgan Stanley remains optimistic about the future of Singapore equities, citing the potential for further support and investment inflows.
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