Date: September 22, 2014
The launch of the new SGX StockFacts, to provide investors with the information needed to identify and understand the stocks that best fit their investment strategy is helpful to retail investors. While the use of such stock screens have been available through the stock brokers trading platforms and websites for some years, retail investors must use the information and make informed decisions.
It is not just sufficient that a particular stock meets the desired investment objective or criteria, as it does not mean that it automatically is a good stock for investment. Retail investors must still take the time to understand the company, its management and fundamentals. More importantly, investors must also understand their own risk appetite before investing and the fact is that past performance is no indication of future performance.
Whilst more information is good for the market and investors, the key challenge for retail investors investing in some of these companies is that, they are not being tracked by equity research analysts and there is no equity research reports available on them. Investors must know that we are in a caveat emptor, buyer beware, market.
SIAS calls on SGX to re-introduce the independent stock research reports to give guidance and advice on investable companies on a regular basis to retail investors. That would be a more meaningful assistance to retail investors.
With this new initiative, brokers must also step up and provide more advice, more training for investors as well as research reports so as to improve the retail participation in our stock market.
President & CEO
Securities Investors Association (Singapore)