Finalto adds 32 Singapore leveraged equity CFDs to its liquidity offering

London based multi-asset liquidity provider and prime brokerage Finalto has announced that it will add 32 leveraged equities belonging to some of the most prestigious companies listed on the Singapore Stock Exchange (SGX) to its list of offerings. Finalto already offers over 1,000 single stock CFDs to its clients. Through its continuous investment in technology, the fintech firm said it can automate corporate actions and take care of all the back-office requirements of its clients.

The Singapore stock market has witnessed strong performance in 2021, with a 14% increase as of November 22, 2021, making it one of the top performers in the Asia-Pacific region. With a high proportion of industrial and financial stock listings, the SGX is very cyclical. These sectors tend to perform in sync with macroeconomic changes, providing investors more upside potential during times of economic recovery.

Alex Mackinnon, CEO of Finalto Asia, said,

“The addition of the Singapore leveraged equities further establishes Finalto as a business that listens to the market and responds to our clients’ needs. This is just another step in our commitment to bring the best and latest opportunities giving our clients an edge over the competition.”

With one of the fastest vaccination roll-outs globally and progressive easing of border restrictions, Singapore expects a strong recovery in H2 2021. The government revised its economic growth estimates upwards to 6%-7% in 2021, from the earlier projection of 4%-6%. The QoQ GDP growth stood at 0.80% in Q3 2021.

With overall global economic recovery from the pandemic-induced recession, the Singapore stock market is expected to do well. The Singapore government has launched a series of initiatives to push high-performing companies in the region to get listed on the stock exchange. This includes offering high-growth companies the chance to raise funds privately before a public listing. The Monetary Authority of Singapore (MAS) plans to increase its grants to aid companies to cover the cost of listing.

By offering 32 additional single stock CFDs from the Singapore equity market, Finalto added it will be able to provide its clients exposure to a region with high growth potential, which incidentally also has one of the cheapest valuations. Not only will mergers and acquisitions (M&As) drive the market in the future, but the huge banking sector in the country is poised to benefit from rising yields in the US.

This means top brokers, hedge funds and other clients of Finalto will be able to offer these assets to their respective clients, thereby increasing their ability to provide value offerings and expand their client base.

The Monetary Authority of Singapore (MAS) estimates that the financial services sector in the country expanded by 6% in H1 2021. In 2020, the sector had outperformed the overall economy by 5.1%. This includes entities like payment firms, insurance services, fund management, and banking.

Increased fee income and expected writebacks of bad loan provisions are expected to help Singapore’s major banks sustain a steady earnings momentum through Q4 2021. They are set to gain from a rise in interest rates sooner than expected if inflation rates worldwide persist at high levels. However, interest margins could take a long time to recover, with easy monetary policies to support economic recovery worldwide.

The city’s top banks posted net profit gains in Q3 2021. DBS Group Holdings Ltd. posted YoY growth in net profit of 31%, while United Overseas Bank Ltd. saw 57% YoY growth. This growth was driven by lower credit allowances and higher fee income.

DBS expects resilient asset quality in the future, with lower total allowances. Moreover, the stock had been trading with a steady price increase for 12 weeks as of November 18, at the upper end of its 52-week high-low range. This is a signal of bullishness ahead.

Apart from DBS Group Holdings Ltd. and United Overseas Bank Ltd, some other banking stocks now available among Finalto’s offerings include Hong Leong Finance Ltd. and Oversea-Chinese Banking Corp.

Oversea-Chinese Banking Corp Ltd (OCBC) is the second largest lender in the country. In early November 2021, it announced that its quarterly net profit climbed 19%, beating estimates.

The state investor firm, Temasek Holdings Pte., is making trading in Singapore more compelling for millennials and Gen Z investors. Almost a quarter of its $283 billion global portfolios is in Singapore. Finalto has added many of these prominent companies to its asset list, including Singapore Airlines Ltd., Singapore Telecommunications Ltd., CapitaLand Investment Ltd., and Singapore Press Holdings Ltd. All these stocks are much sought after by the city’s long-term investors due to their steady dividends and their reputation of having a state-owned triple-A-rated holding company backing them.

As Temasek bids against itself in the takeover war over Singapore Press Holdings Ltd., there has been a rise in the share price from S$2.099 per share to S$2.40. This is a 60% premium over the stock price, which stood at S$1.5 in March 2021.

The Asian market is expected to gain from the global economic recovery and solid economic data. With the inclusion of Singapore single stock CFDs in their product portfolio, Finalto seals its reputation of being a true global liquidity provider.