Slowing Singapore Economy Drives Profit Drop

The video discusses the economic challenges faced by Singapore, including a profit drop in companies listed on The Straits Times Index (STI) and a lowered GDP forecast due to US-China trade tensions. The STI has fallen by 5% this month, though it remains up 2% year-to-date. Despite lagging behind Thailand and Vietnam, it outperforms Malaysia and Indonesia. Investors anticipate monetary and fiscal stimulus, although none has been implemented yet. The STI's valuation is currently favorable, trading at 12 times forward PE, below the five-year average of 13 times.

What was the reported profit change for companies listed on The Straits Times Index in the June quarter?

• Profit doubled

• First profit increase in six quarters

• First profit drop in six quarters

• No change in profit

What percentage of stocks on The Straits Times Index have cut their earnings forecast for the year?

• 80%

• 70%

• 60%

• 50%

How has the index performed compared to its neighbors like Malaysia and Indonesia?

• It has performed better than Malaysia and Indonesia but lagged behind Thailand and Vietnam

• It has outperformed them

• It has performed equally

• It has lagged behind them

What is the expectation from policymakers in response to the current economic situation?

• No action expected

• Increase in taxes

• Reduction in trade

• Monetary and fiscal stimulus

What is the current trading valuation of the index in terms of forward PE?

• 10 times

• 12 times

• 15 times

• 13 times