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S'poreinvestorsseeksafetyincash:poll
27th
Feb2012
TheBusinessTimes
ByJASMINENG
2012SingaporePressHoldingsLimited
Overall,locals'marketsentimenthasdampened:FPI
SINGAPORE investors are making a dash for cash amid faltering
confidence in the
currentmarketanditsprospects,BritishfinancialfirmFriendsProvidentInternational
(FPI)said.
According to its quarterly Investor Attitudes report, cash is
the
onlyassetclasstorecordanimprovedscoreinSingapore-from
28to30points-whilegoldbullionisalsostillverymuchinfavour
despitedroppingbackbyfourpointsfromitshighof33pointsin
thesecondquarterlastyear.
Equityandcurrencymarketsexperiencedthesteepestdeclineof
some 10 points, to be the least favoured asset classes among
Singaporeans.
'There isnow a veryobviousdivide amongst assetclasses,with
goldandcashmorethan20pointsaheadofanyotherassetclass
in thefavourabilityrankingsof investors,' saidChrisGill,
general
managerofFPISouth-eastAsia.
Headdedthatthedeclineinattitudestowardsmoneyandcurrencymarketscouldbea
directresultofthesovereigndebtcrisisinEurope.
ForeveryfourrespondentstoFPI'spollinSingapore,onebelievesthattheEurozone
crisis will continue for another one to two years, with the
'affluent' and 'aspiring
affluent'categoriesmorelikelytopredictso.The'upandcoming'respondentsseem
moreoptimistic,believingthecrisiswilllastbetweensixmonthsandayear.
Overall, Singapore investors' sentiment towards current and
future markets has
dampened.Almosthalfoftherespondentsbelievethecurrentstateofthemarketis
worsethansixmonthsago,andtheyarepessimisticaboutitsprospects.
Investmentchoices: Aside
fromcoldhardcash,gold
bullionisalsostillverymuch
infavouramongSingapore
investors
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While some investors are erring onthe sideofcaution, the
majority of respondents
prefertomaintainamorebalancedriskappetite.
'Despitethevolatileglobalmarketconditions,thereappearstobeatactical,shorter-
termapproachbeingadoptedalongsidealonger-termstrategicplan.Wearenotseeingadramaticshiftinriskappetites,butratherachangeinwhereinvestorsarechoosingto
invest,'MrGillsaid.
Meanwhile,inHongKong,goldremainsthemostfavouredassetclass,thoughithas
shedfourpoints.Atthesametime,cashhassoaredto23points-anall-timehigh-
suggestingthatinvestorsprefernottopartwiththeirmoneydespitehighinflation,FPI
said.
HongKonginvestorsarealsolesswillingtochoose'riskier'options.Equitiesaredown
17points,whilecurrencymarkets fell 10points. Propertyand
equitiesare the least
favouredassetclassesamongHongKonginvestors.
The European debt crisis has also crippled investor sentiment in
Hong Kong, with
investorsshowingthe lowest confidence inmarketprospects yet.
Almosthalfof the
respondentsfromHongKongfeeltheEurozonecrisiscouldlastbeyondayear.
TheFPIreportpolledatotalof2,783peopleinSingapore,HongKongandtheUnited
ArabEmirates.BoththesamplesizesinSingaporeandHongKongwere1,002.
Source:TheBusinessTimes
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