Have you wonder why US market at historical all time high , but STI is still around 3300 point (all time high at 3900)? Well, the reasons is because , firstly, STI market track 2 market, (mainly US and China) , US at all time high and China market had just bottom out. Also the other reason is because in Singapore , there are lot of China people be it PR or foreigner , they follow china market too.
However , this could be the real MAIN reason , because during the start of Jan 2013 , you may have seen a lot of penny stock in the top 20 volume , everyday in the SGX , people all playing those everyday , buying million of shares at few cents. Then I asked my broker , hey people should be making a lot of money buying these as one day they can surge 10% to 100% . My broker answer , no in fact a lot people lose money , losses range from 50k to 6 figure or more.
That the reason why u see when the US market surge to all time high , however because in the market a lot of people lose money that why there is no strength in the STI market.
Disclaimer: Please be informed that this blog mentioned stocks are solely for the purpose of information only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser.