EStockResearch.com

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*The year 2006 had been a fabulous year with investors raking in about 28% return on Singapore equities, above the previous year's return of 13%. In view of the favourable economic environment and respectable corporate earnings growth in 2007, we believe the bullish market sentiment in 2006 will carry over into 2007. Potential catalysts such as M&A activities, corporate exercises, new listings and increased liquidity will continue to drive trading volume and value. However, the risk vs potential return in investing in equities may have increased, with the market continuing its upward momentum from its record high level. We may encounter market hiccups in the presence of unpleasant surprises, eg oil supply shocks, political, economic and social tensions and natural calamities.
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