<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>$400b in market cap wiped out in 2008
</TR><!-- headline one : end --><TR>Value of 783 listed firms halved, in line with 50% slump in STI last year </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Yang Huiwen
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->IF THERE has ever been a year investors would like to forget, the slow motion train wreck of 2008 must surely be it.
It has been 12 months of unprecedented carnage, with the Straits Times Index (STI) plunging 50 per cent to 1,761.56 - the biggest annual fall in its 42-year history.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story -->RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
BUDGET S'PORE LISTED COMPANIES
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</TD></TR></TBODY></TABLE>Massive sell-offs and fund redemptions wiped out almost $400 billion from the combined market value of the 783 companies listed here.
The total value of shares of those firms at the market close yesterday was $393.04 billion - less than half the $790.3 billion on Dec 31, 2007, and the lowest since the end of 2004, where it stood at $360.7 billion.
Much of the damage was done in October, when $123 billion of value disappeared into thin air.
Most corporations have also shrunk significantly, although SingTel retained its crown as the biggest listed firm in terms of value despite its market capitalisation shrinking 36.2 per cent to $40.6 billion. Market capitalisation is calculated by multiplying the company's share price by the total number of shares.
Membership of the so-called billion- dollar club, or firms with a market capitalisation exceeding $1 billion, has shrunk to 62 from 115 in 2007 and 97 in 2006.
'This is a record drop in stock market value for Singapore,' said Westcomb Securities research head Goh Mou Lih, who expects market value to shrink further in the first half of this year, marked by a severe economic downturn and nasty surprises in corporate earnings.
Export-oriented sectors, as well as those in consumer goods, excluding basic necessities, may be particularly vulnerable, he said.
However, Mr Goh said that things may take a turn for the better in the second half, which may prop up growth.
Malaysian palm oil giant Wilmar International, which muscled its way into second place in 2007 in terms of market capitalisation, has fallen to fourth after its value dropped 48.2 per cent to $17.8 billion.
A falling property sector marked by poor sales of new homes and concerns about potential asset write-downs has stripped more than 50 per cent off the market capitalisation of developers like CapitaLand and City Developments.
Bourse operator Singapore Exchange, whose fortunes are tied to market turnover and derivatives volume, saw its market capitalisation slump more than 60 per cent to $5.43 billion.
Banks, viewed as a proxy of the economy, were hammered as well. Their market value has been slashed by almost 40 per cent, dogged by slowing loans growth, lower non-interest income and rising non-performing loans.
DBS Group Holdings, which was the smallest of the three banks in October, managed to overtake OCBC Bank in market value after its $4 billion rights issue. United Overseas Bank is still the largest bank, with a market value of $19.7 billion.
Some of the more prominent China shares, including Cosco Corp, Yangzijiang and property developer Yanlord, have declined by more than 70 per cent.
So what to do for 2009? Analysts maintain that sticking to defensive plays is the best bet until the economy shows some signs of recovery.
SMRT is among the best performers, having lost only 1.7 per cent in value last year, while climbing 30 notches to 32nd place in terms of market capitalisation.
DBS Vickers expects the STI to trade within a range of 1,450 to 2,180.
'Companies backed by relatively resilient earnings, strong cash flows and cashed-up balance sheets are in a favourable position to acquire cheap assets', it said, citing SIA Engineering, Singapore Press Holdings and Singapore Technologies Engineering as preferred picks. [email protected]
</TR><!-- headline one : end --><TR>Value of 783 listed firms halved, in line with 50% slump in STI last year </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Yang Huiwen
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->IF THERE has ever been a year investors would like to forget, the slow motion train wreck of 2008 must surely be it.
It has been 12 months of unprecedented carnage, with the Straits Times Index (STI) plunging 50 per cent to 1,761.56 - the biggest annual fall in its 42-year history.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story -->RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
<!-- Photo Gallery -->
</TD></TR></TBODY></TABLE>Massive sell-offs and fund redemptions wiped out almost $400 billion from the combined market value of the 783 companies listed here.
The total value of shares of those firms at the market close yesterday was $393.04 billion - less than half the $790.3 billion on Dec 31, 2007, and the lowest since the end of 2004, where it stood at $360.7 billion.
Much of the damage was done in October, when $123 billion of value disappeared into thin air.
Most corporations have also shrunk significantly, although SingTel retained its crown as the biggest listed firm in terms of value despite its market capitalisation shrinking 36.2 per cent to $40.6 billion. Market capitalisation is calculated by multiplying the company's share price by the total number of shares.
Membership of the so-called billion- dollar club, or firms with a market capitalisation exceeding $1 billion, has shrunk to 62 from 115 in 2007 and 97 in 2006.
'This is a record drop in stock market value for Singapore,' said Westcomb Securities research head Goh Mou Lih, who expects market value to shrink further in the first half of this year, marked by a severe economic downturn and nasty surprises in corporate earnings.
Export-oriented sectors, as well as those in consumer goods, excluding basic necessities, may be particularly vulnerable, he said.
However, Mr Goh said that things may take a turn for the better in the second half, which may prop up growth.
Malaysian palm oil giant Wilmar International, which muscled its way into second place in 2007 in terms of market capitalisation, has fallen to fourth after its value dropped 48.2 per cent to $17.8 billion.
A falling property sector marked by poor sales of new homes and concerns about potential asset write-downs has stripped more than 50 per cent off the market capitalisation of developers like CapitaLand and City Developments.
Bourse operator Singapore Exchange, whose fortunes are tied to market turnover and derivatives volume, saw its market capitalisation slump more than 60 per cent to $5.43 billion.
Banks, viewed as a proxy of the economy, were hammered as well. Their market value has been slashed by almost 40 per cent, dogged by slowing loans growth, lower non-interest income and rising non-performing loans.
DBS Group Holdings, which was the smallest of the three banks in October, managed to overtake OCBC Bank in market value after its $4 billion rights issue. United Overseas Bank is still the largest bank, with a market value of $19.7 billion.
Some of the more prominent China shares, including Cosco Corp, Yangzijiang and property developer Yanlord, have declined by more than 70 per cent.
So what to do for 2009? Analysts maintain that sticking to defensive plays is the best bet until the economy shows some signs of recovery.
SMRT is among the best performers, having lost only 1.7 per cent in value last year, while climbing 30 notches to 32nd place in terms of market capitalisation.
DBS Vickers expects the STI to trade within a range of 1,450 to 2,180.
'Companies backed by relatively resilient earnings, strong cash flows and cashed-up balance sheets are in a favourable position to acquire cheap assets', it said, citing SIA Engineering, Singapore Press Holdings and Singapore Technologies Engineering as preferred picks. [email protected]
