Besides China, the first epicenter of the disaster, Singapore was one of the first countries to report cases of infection with Covid-19, alongside Taiwan, the Philippines, Thailand, and Vietnam. As we speak, the country has 631 cases, with two deaths.
As it happened with markets all over the world, Singapore stocks had a rapid fall. The benchmark Straits Times Index (STI) had one of the most shocking drops since Oct 2008, closing down at 7.4% on March 23.
"In this outbreak, STI is down twice as much," Phillip Securities head of research Paul Chew said. "This, as the outbreak has turned global, in comparison with SARS, which was confined within the Asia region."
Due to stimulus, the USD/SGD is expected to move higher, say market analysts.
Thursday, a stimulus package was announced to fight against the Coronavirus fallout. Like the US stimulus package, this means to protect the jobs, support businesses, and help the local economy. The government already took such measures in February ($4.4 Billion), but given the current situation, it has been decided that another $33.6 Billion is necessary. Overall, this stimulus package represents 11% of Singapore's GDP.
"This is a landmark package and necessary response to a unique situation," Heng Swee Keat, Singapore's deputy prime minister, and finance minister, said in a speech in parliament on Thursday.
This is the second time when Singapore is using its state reserves. They did so only during the 2009 financial crisis when $3.4Billion was used.
Besides the Corona crisis, economists are expecting a year-over-year contraction of 1.5% for the economy.
If you want to know about what’s hot in the market, follow the Featured Articles section on our platform. Register now and see what Capex has to offer:
- Stellar customer service
- Powerful WebTrader platform and mobile app for seamless trading on-the-go.
- High-end integrated trading tools
Sources: cncb.com, channelnewsasis.com, investing.com
The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.