BROKERAGES reported a surge in trading activity among Singapore investors in the days after Donald Trump emerged victorious in last week’s US presidential election.
A day after Trump’s victory, trading orders at Tiger Brokers in Singapore spiked 84 per cent from the day prior, a 51 per cent increase above October’s average trading order volume. Overall on its platform, trading orders surged 74 per cent from the day prior or 48 per cent above October’s average trading order volume.
Trading volumes in Singapore the day after the election soared 265 per cent for Tesla, 343 per cent for Coinbase and 82 per cent for Trump Media, from the previous day, said Tiger Brokers.
Other notable stocks that were traded on Nov 6 include Nvidia, Amazon, Advanced Micro Devices, said Tiger Brokers. The S&P 500 also drew interest, with trading in the SPDR S&P 500 ETF Trust rising as well, said the brokerage.
CGS International’s deputy group head for research Lim Siew Khee said that the Singapore stocks logged a higher average daily turnover (ADT) in the period around the US election. The ADT by value rose from a monthly S$1.2 billion over January to September 2024, to a monthly value of about S$1.5 billion in October to November 2024, she said.
Investment platform FSMOne.com witnessed a “significant increase” in trading activity on both the US and Singapore exchanges, its general manager Joshua Chim said.
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After the US election, the platform’s daily average turnover amount “rose significantly”, climbing up 75 per cent from pre-election numbers, he said.
Main beneficiaries of the US election
Stocks that are benefiting from the US election include Trump beneficiaries, as well as names in banking, oil and gas, and crypto-related products, said the brokerages.
FSMOne.com’s Chim also named Tesla, Coinbase and Trump Media and Technology Group among names that gained.
Analysts observed that banking shares have also benefited from the elections, due to expectations of higher-for-longer interest rates.
Jason Kuan, director of investment research and advisory at CIMB, said: “In Singapore, the main gainers have been the banks, driven by market expectations of prolonged higher interest rates. On the flip side, Reits (real estate investment trusts) have seen declines due to the same rate outlook.”
Rates are likely to be higher for longer due to Trump’s corporate tax cut policy, which is expected to lead to higher inflation, noted Chim.
Lim added: “In addition, hope of higher capital return (DBS’ share buyback programme) and UOB potentially rolling out a similar programme also caused the share price to outperform.”
Maybank Securities analyst Jarick Seet said that other stocks that could score wins post-election are oil and gas counters that would benefit from increased oil production in the US, such as offshore and marine specialist Seatrium and technology solutions provider CSE Global.
Trump’s preference for conventional energy sources over renewables signals that transport stocks – such as ComfortDelGro and Singapore Airlines – stand to gain from capped oil prices amid higher oil production, said DBS Group Research. Meanwhile, shipping stocks may be weighed down by tariffs on China imports, it added.
Cryptocurrency-related stocks are among the US equities that have garnered interest from Singapore investors, alongside stocks such as Tesla and Nvidia, added Paul Chew, head of research at Phillip Securities Research.
Digital brokerage Moomoo Singapore witnessed a “strong surge” in interest in crypto-related products a day after the election. The number of investors trading spot crypto products rose by 258 per cent, that for crypto ETF products was up 162 per cent, and it was 132 per cent for crypto-related stocks, said its chief marketing strategist Isaac Lim.
Of the investors trading spot crypto products the day after Trump’s win, 40 per cent were trading it for the first time, he added.
Singapore stock market outlook post-Trump victory
Looking ahead, Singapore’s stock exchange may expect higher trading activity driven by heightened market volatility under a Trump administration, said DBS Group Research.
Phillip Securities’ Chew added: “Increased volatility in capital markets are positives for the Singapore banking sector.”
With lower taxes and regulations, the Straits Times Index “should hold firm in the near term, underpinned by banks”, though market breadth will likely be mixed at best, said DBS.
A stronger greenback and higher yields on expansionary and inflationary policies will likely see banking stocks “hold up” as long-end yields remain high, it added.
