Singapore surpasses Indonesia to become Southeast Asia’s largest stock market

Glonghui, May 20th—Indonesia's capital markets have recently faced a series of unfavorable developments. The latest setback is being overtaken by Singapore, losing its position as the largest stock market in Southeast Asia. Consolidated data shows that the total market capitalization of listed Indonesian companies has fallen from its January peak to $618 billion, while Singapore’s stock market capitalization has climbed to $645 billion. In recent months, investor sentiment in the Indonesian market has remained persistently subdued. On one hand, there are concerns that its stock index may be downgraded to frontier market status. On the other hand, both Fitch and Moody’s have revised Indonesia’s credit rating outlook to negative. Currently, Indonesia’s stock index ranks at the bottom among major global markets, and the rupiah has repeatedly hit record lows. Soh Chih Kai, Global Investment Fund Manager at Lion City, commented that, despite the current unfavorable conditions in the Indonesian market, there remains potential for recovery and a rebound in the future. He stated, “In an environment of considerable global policy uncertainty, capital continues to favor markets with stable certainty, further strengthening Singapore's relative advantage in the stock market.”