A STUDY OF THE DBS 50 INDEX

Abstract

Following the stock market split on 2 January 1990, the spotlight falls upon the Singapore-incorporated companies' shares traded on the main board of the Stock Exchange of Singapore. To date, numerous studies had been done on the local bourse. However, research based mainly on Singapore shares is seriously lacking and, therefore, urgently wanting. Given the dorminance of institutional and fund management interest in local shares, this study seeks to examine the market for high turnover shares. Often, for working convenience, stock indices are employed as market proxy in research. In this exercise, the DBS 50 Index is specifically selected to base our study upon. Given the salient characteristics of the DBS 50, this research is initiated on the premise that the tests results will closely reflect actual market conditions.