Sgx Stock Prices

Understanding how stocks works can be a little difficult considering its wide scope. The various terminologies can be very confusing for someone who does not know anything about stock market. A good example is studying and understanding how the SGX Stock Prices work. SGX Nifty is included in this scope for study. Singapore Exchange is one of the leading stock exchanges in Asia. In fact, a lot of other stock markets from other countries rely on the SGX Stock Prices daily.

To further understand, the SGX or the Singapore Exchange allows foreign investments like the CNX Nifty to be traded in Singapore exchange. The movement reflects other stock indices within the whole of Asia. This type of trading will allow foreign investors to also take position in the highly important Indian Market.

The Singapore Exchange does not allow Indian Stocks to be traded in their market but it does allow future product such as the SGX Nifty Futures. This can play a huge role in the SGX Stock Prices. The SGX Nifty Futures can be deemed a derivative of the Singapore Stock Exchange which caters to futures trading of the underlying NSE Nifty Index. By doing this, individuals and FII’s can invest in Nifty Futures using the prevailing SGX Stock Prices.

There are at least two types of contracts in the SGX stock prices with different settlement periods.

• E- SGX QUEST (T) with settlement in the same day, every Monday to Friday 9AM to 6.15PM
• E* – SGX QUEST (T+1) with settlements after one day, every Monday to Friday 7.15PM to 1AM

Since the two contracts have different trading times, it allows traders from all over the world to trade in the SGX even when the market is already close. This also affects the SGX stock prices in many different ways. FII’s investment through SGX Nifty Contracts and India has a 2 ½ hours difference. SGX stock prices become available at 9 AM as Singapore opens its business day. This means that when tracking Singapore Nifty, the market can predict the initial direction of the Indian Stock Market.

Understanding the Difference Between Singapore Nifty and NSE Index (S&P CNX Nifty)

SGX Nifty products are denominated in dollars providing foreign traders and investors direct currency protection. Nifty Futures in the meantime combines position on the Nifty Futures with a position on the dollar-rupee forward market. This can mark a huge difference in the SGX stock prices as a result. Foreign investors will have to go through a variety of complex actions in order to access Indian Nifty.

How SGX – Nifty can affect Indian Stock Market

SGX stock prices can be felt as the Singapore market opens 2 hours before the Indian Market directly relates to the NSE market. It moves with respect to the Indian Nifty meaning it provides initial direction to the whole Indian Stock Market. India and Singapore are located in the same continent which often times make them co-related to both market. Because these two huge markets are usually next to each other, Indian Advisory and Financial Institutions can give trading recommendations on SGX Nifty.