Singapore sees short selling slide
19 August 2016 Singapore
Image: Shutterstock
Demand to borrow Singapore’s STI index listed shares has fallen by 27 percent after a spike in average shorting interest in February, according to IHS Markit.
The STI index has 1.6 percent of free float shorted on average, as of 18 August, with all of the top 10 most shorted firms in February seeing borrow interest fall.
Gaming operator Genting and Singapore Press Holdings were highlighted by IHS Markit as the index’s previously most shorted companies that had seen interest fall most.
In contrast, IHS Markit noted that there were some notable exceptions to this index trend, citing examples such as Sembcorp Marine, a Singaporean engineering firm, which saw a 60 percent growth in short interest in recent weeks.
By sector, real estate was also shown to be immune to the wider trend of cooling short interest. IHS Markit noted the sector’s falling asset prices and mounting debt piles the pillars propping up short interest.
IHS Markit pointed to Singapore’s City Development and Ascendas, which have both witnessed short interest in their shares soar by 119 percent and 68 percent respectively, in the six months since short interest hit its peak across the STI index.
The STI index has 1.6 percent of free float shorted on average, as of 18 August, with all of the top 10 most shorted firms in February seeing borrow interest fall.
Gaming operator Genting and Singapore Press Holdings were highlighted by IHS Markit as the index’s previously most shorted companies that had seen interest fall most.
In contrast, IHS Markit noted that there were some notable exceptions to this index trend, citing examples such as Sembcorp Marine, a Singaporean engineering firm, which saw a 60 percent growth in short interest in recent weeks.
By sector, real estate was also shown to be immune to the wider trend of cooling short interest. IHS Markit noted the sector’s falling asset prices and mounting debt piles the pillars propping up short interest.
IHS Markit pointed to Singapore’s City Development and Ascendas, which have both witnessed short interest in their shares soar by 119 percent and 68 percent respectively, in the six months since short interest hit its peak across the STI index.
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