Singapore retail investors more confident of outlook for next six months

Singapore retail investors are becoming more confident in their investment outlook for the next six months, compared with six months ago, buoyed by optimism over outlook for the local, global economic and investment climate, as well as the Singapore stock market. The J.P. Morgan Investor Confidence Index climbed 16 points to 122 in June 2013, a level not seen in two years. The latest survey of investor sentiment, the sixth semi-annual poll of 500 investors, was conducted by J.P. Morgan Asset Management (JPMAM). The increase in the Index was due to more positive responses from investors on a wide range of indicators. It included the outlook for the Straits Times Index (STI), the economic and investment environments in Singapore and globally, alongside views on whether their investment portfolio would appreciate, as well as if they would increase or decrease investments, in the next six months. The survey was conducted between May and June 2013, before the US Federal Reserve indicated that it would start to curtail the bond buying programme at the year-end. Reflecting the Fed's view that the US economy is on the mend, the investors polled were most optimistic about prospects for a better global economic environment in the next six months. The index component for better global economic environment shot up to 113 from 93 previously. Nearly half the respondents expect the Singapore economy to improve compared to 29 per cent six months ago. Of these, one in five attributed it to the recovery of the US economy, followed by recovery of global markets. The J.P. Morgan Investor Confidence Index is derived from a score of investors' responses to a series of questions on their outlook for the STI, local and global economic and investment environments, appreciation in investment portfolio, and the likelihood of increasing personal investments over the next six months.