An Exchange Traded Fund that invests in Singapore had a difficult year due to exposure to the financial sector and concerns about the global economy.
But the Singapore economy is expected to grow due to increased funding in the commodities sector.
The iShares MSCI Singapore Index Fund (NYSEArca: SAP) is about 15% since the beginning, but some say that the ETF could avoid debt troubles brewing in Europe and the United States
"Anchored at the crossroads of Asia, this island nation is hardly abundant natural resources is dependent on its neighbors almost everything -... Well except for human capital in this context, it has used its resources it is carefully taken their niche in outstanding range of financial services, pharmaceuticals and information technology, "writes John Wasik of Reuters.
"As a result, the economy grew by nearly 15% last year," the report said. "The government has a long-term, major trading partners in Southeast Asia and the new Nexus Technology started. As one of the richest countries in Asia, it has a low unemployment rate and small budget surplus, its GDP per capita is among the highest in the developed world. "
"Growth in the Singapore market by a huge increase in funding for the resource sector has increased," Boey Yin Chong, managing director of syndicated finance at DBS Bank Ltd, said. "Basic 500 million U.S. dollars in 2007, we will probably hit $ 9 billion more by the end of 2011." [Frontier Market ETF is their year]
Developer and frequent exchanges of products has contributed to the syndicated loan in Singapore. Katrina Nicolas reports for Bloomberg as loans increased 91% to $ 38.3 billion this year to the same period in 2010. Singapore hosts the largest container port in Asia and is the second largest center of oil refining, trading and storage. The Contrarian: Single Country ETFs.
However, Singapore is not immune against the debt crisis and the euro area economy will feel the pressure of the recent warning from Standard and Poors.
The growth outlook for 2012 is based on the fate of countries in the euro area and by the Ministry of Commerce and Industry, the industry can expect growth of a range of 1-3% in 2012 .
Malaysia, Singapore ETF mounted Rail Link.
As growth in developed countries like Europe and the United States slows, Singapore is an edge as a source of funding for energy traders and suppliers of raw materials like oil cereals, sugar and cooking, says Eugene Szeto, HSBC Holdings Plc Head South-East Asia loan syndication, on Bloomberg.
Singapore ETF a heavy burden on the financial and industrial companies, many of which almost all regional companies in Asia," Morningstar said in a profile of the fund.
A slower than expected recovery in the global economy on the growth of exports from Singapore win, said Morningstar.
Singapore is a very small country with virtually no natural resources. Economic growth is highly dependent on international trade and financial services.
This fund is relatively concentrated with the top 10 stocks account for about 70% of the total portfolio. Non-financial corporations, real estate companies, representing almost 50% from the total portfolio.
Electronic Network On Property Information Launch By Real Estate Agencies
Labels: BusinessPosted by Blogs at 08:34
Subscribe to:
Post Comments (Atom)
Copyright © NEWS BEAT. All rights reserved.
Blogger template created by Templates Block in collaboration with profile links building | organic premium | Blogspot Template
0 comments:
Post a Comment