Singapore Share Investing Guide 2019

There are many sources of investment in Singapore, for example, Singapore Saving Bonds, STI ETFs, Singapore REITs etc.

But when it comes to share investing in Singapore there are approx 700 companies listed in Singapore Stock Exchange. That means you have hundreds of more options to invest.

One reason to invest in Singapore is the status of the Singapore Stock Exchange OR SGX. SGX is Asia’s fastest growing stock exchange.

You might be wondering why I am using stock and share both.

There is a minute difference in stock and share.

Singapore Stock or Singapore Share?

The stock is the capital or fund raised by the company whereas share is the single unit of stocks. When someone says he owns a stock that means he owns that percent of the company.
 
But why will a multi-billion company give common people that percentage of ownership?

Because the company needs funds. To expand its business to globalize it, to acquire new technology.

When you buy stocks of your favorite company for example bank OCBC, you are giving them extra fund to grow their business. By using this fund the bank will use new technology to make a more sophisticated user interface for their customer thereby increasing more customer.

In return of the money you invest, you get income through dividend. But there is no security regarding dividend by the company. It depends upon the company and its policy whether it will offer dividend or not. There are blue-chip companies in Singapore which deliver dividend on time.

You get return as per your choice of investment. It depends on the type of investor you are.

There are basically three types of investors or traders:

Growth Investor
 
They actively buy low and sell high, they look for less established companies which have good chance to grow. They buy low priced stocks which are more volatile.
 
Value Investor
 
They mostly invest in undervalued stocks. Undervalued stocks are the stocks which have the low intrinsic value of stocks. They are undervalued and are pretty sure to gain price value soon. 
Passive Investor
 
They are in share investment from long term. They hold on to stock/shares for a long time and earn passive income from high dividend. They invest in blue-chip stocks which perform well consistently. 

What kind of investor you are? 

Growth, Value or Passive Investor?

Before choosing a type of investor you want to be you need to know how to chose a stock or share in Singapore Stock Exchange. 

How to choose a stock/share in SGX?

You will need to look for few things in the company you are choosing to invest in Singapore.
 
Valuation
 
To be a value investor you have to focus on the valuation of the company that includes; Price/Earnings ratio, Price to book value. It tells you how much other investors or traders are willing to pay for the share.
 
P/BV= 1, represents the perfect value. Less than 1 means stock might be undervalued and greater than 1 means traders are expecting good performance from the company. 

About the company’s Business model and Management 

How the company is performing on the economic level? What is its status in the domestic level and on the global level? How the company manages its funds, its stability, and its market reputation?

You have to know about all these things before investing in a company.

Debt and EBITDA

Every company has a little amount of debt. But if it is too big then it means it is borrowing more than it can return. EBITDA is earnings before interest, tax, depreciation, and amortization; it shows the depth of debt held by the company.

Growth

Will you be interested to buy the company which has no signs of growth whatsoever?

NO.

Everyone wants to invest in a company which has a good sign of growth. You can check the growth of the company by its share price and dividend history. If the value of dividend and dividend yield is increasing yearly it means you will get profit by share investing.

Avoid getting messed up with technical jargons used here. You can get all details for investing in the Singapore Stock Exchange from SGX Stock Facts.

How to start investing in SGX?

First of all, you will have to open a CDP account then you will have to open a trading account with a brokerage firm. You can also use the financial advisory firm to manage your account and for financial advice.

Earlier if you wanted to start investing in SGX you would have to start with the lots of share of 1000. But now you can invest in lots of 100. All you will need money equal to 100*share price.

Suppose you want to invest in Creative Technology (SGX: C76). The share price of the company is S$5.57 that means you need 100*5.57= S$557.

We are providing the list of top 10 gainers stocks in SGX for one year.

Top 10 Gainers in Singapore Stock Exchange in One Year

SGX STOCKSSHARE PRICEDIVIDEND(USD) and DIVIDEND YIELD
JARDINE MATHESON HOLDINGS (SGX: J36)USD 68.961.577
2.285%
BESTWORLD(SGX: CGN)SGD 3.30.041052
1.255%
YZJ SHIPBLFG (SGX: S07)RMB 5.285.28
4.18%
JARDINE STRATEGIC HLDG (SGX: J37)USD 39.770.3199
0.804%
DAIRY FARM US (SGX:D01)USD 8.8400.2099
2.375%
ST ENGINEERING (SGX: S63)SGD 3.7200.149
4.027%
PCI LSD (SGX: P19)SGD 1.390.03
2.308%
CAPITAMALL TRUST (SGX: C38U)SGD 2.3900.115
4.812
SBS TRANSIT (SGX: S61)SGD 2.9700.0758
2.554%
HAW PAR CORP. LTD. (SGX: HO2)SGD 12.1600.199
1.64%

These are the stocks which are top gainers in SGX for one year. We are not recommending you to invest in these stocks as the list is only for information purpose. Some of the above stocks are blue chip stocks.

The bottom line

Share investing in Singapore is one of the smartest choices you can make for your investment. Singapore Stock Exchange is the fastest growing and most profitable stock market in Asia. We have shared all the details regarding SGX. Now you can use this information in your research and decide whether you are ready for share investment.

Multi Management Future Solutions provide you with more educational blogs as above. For more details on SGX and latest Singapore stock signals, Subscribe to our 2-day free trials now!!

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