With the current bear market, 66% of Singaporean retail investors are looking to trade more in 2023 in hopes of achieving better gains and returns. Most investors (77%) plan to use the popular “buy the dip” strategy to get the most money out of their investments.
Sectors Positioned for Growth in 2023
According to a survey conducted by Moomoo SG, retail investors are anticipating growth in certain sectors this year. Technology is expected to lead the way, with 29% of respondents choosing it as a sector likely to experience growth, followed by energy and materials with 24%.
Investors are also confident that stocks in these sectors will “outperform market expectations.” This optimism reflects the global trend in environmental, social, and governance (ESG) investing themes, which prioritise net-zero emissions, inclusion, and data scarcity.
Top Five Traded Stocks by Singaporean Retail Investors in 2022
Five of the most actively traded equities in Singapore last year were HSBC Holdings (0005.HK), Futu Holdings (Nasdaq: FUTU), Singapore Airlines (C6L.SG), Pinduoduo US (Nasdaq: PDD), and Pro Shares Ultra Short (Nasdaq: SQQQ). These stocks are likely to remain popular among investors in the coming year.
Meme Stocks Are Losing Popularity Among Investors
More than half of investors (56%) no longer believe that meme stocks will make a comeback in 2023. In other words, investors are willing to put their money into companies that have a solid corporate footprint and value innovation over following the latest social media trend.
Despite the bear market, Singaporean retail investors are optimistic about their prospects in 2023. By using the “buy the dip” strategy and focusing on the technology, energy, and materials sectors, investors are hoping to achieve better gains and returns. Expect the popularity of meme stocks to decline as investors turn their attention to companies with significant corporate footprints and a preference for innovations.