There’s been a lot of activity on the Singapore stock market (SGX) lately. Liquidity is up, with over 2 billion shares changing hands per day (up from 1 billion in June this year) and already 26 new companies have begun listing on the exchange, already passing 2009′s total of 22.

Overseas investors may well be looking to Singapore and Hong Kong as markets offering real economic return, moving their money from sluggish performers in Western countries. The possibility of higher valuations is attracting more companies to list. Among the latest IPOs are GIC’s Global Logistic Properties, chasing S$3 billion (US$2.6 billion) and Temasek’s Mapletree Investment Trust, wanting an extra S$1 billion ($764 million). Malaysian palm oil producer Mewah is raising S$600 million ($460 million) and SGX will soon see IPOs for Yamada Green Resources and XinRen Aluminum.

Some market watchers are not so optimistic about prospects in the immediate future, pointing out that liquidity is still ‘pretty low’ compared to 2007. Investor sentiment must still grow further to see the kind of support the IPOs are looking for.

source & article: Channel NewsAsia