[SINGAPORE] Singapore shares were little changed in early trade the first trading day after the country’s election wrapped up.
As at 9.28am, the Straits Times Index (STI) opened 0.09 per cent, or 3.36 points higher at 3,841.79, on the first trading day after elections.
Across the broader market, gainers outnumbered losers 107 to 79 after 79.8 million securities worth S$134 million changed hands.
On Saturday (May 3), Singaporeans went to the polls and gave the ruling People’s Action Party (PAP) an overall share of 65.57 per cent of the votes in GE20205, a stronger show of support than the party’s 2020 results of 61.24 per cent. The de facto opposition party, Worker’s Party, retained its existing seats, but made no gains.
Market watchers had said the result was likely to have limited impact on the stock market, with the election result offering a welcome signal for investors who value political stability.
In a Monday report, Citi said the PAP’s higher vote share marks a return to its traditional “safe haven” appeal during uncertain times.
“The moderate main opposition, Worker’s Party (WP) successfully defended its 10 parliamentary seats, which should allay any potential concerns about a lurch towards populism and attendant fiscal risks,” said the bank.
Despite continued countercyclical accommodative macroeconomic policy mix regardless of the election results, the analysts noted that the stronger mandate secured by the ruling party would likely cement continuity of current government policies.
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