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Weekly Outlook

Market Commentary – December 2024

Market Commentary – December 2024

EQUITY MARKET UPDATE

Source: Bloomberg.

The equity market declined in December but capped off a strong overall performance for 2024. The S&P 500 fell 2.4% month-to-date (MTD) as investors likely locked in profits after a year in which the index gained an impressive 25%. Growth outperformed value, with the NASDAQ Composite (+0.6% MTD) showing resilience compared to the Dow Jones Industrial Average (-5.1% MTD). Growth stocks and Big Tech led the market in 2024 with an impressive 29.6% total return, bolstered by expectations of rate cuts, robust earnings, and surging investments in AI.

Developed markets posted strong aggregate returns, with the MSCI World Index up 19.2% for the year, far outpacing the MSCI Emerging Markets Index (+8% YTD). The rotation to small has yet to be realized as large caps (+19.2% YTD) continued to significantly outperform small caps, reflecting investor caution amid mixed economic signals that raised the likelihood of a pause in The Fed’s rate cuts.

Across the APAC region, ASEAN markets underperformed their Western counterparts. The region’s performance was lifted by strong gains in Hong Kong (+23.6% YTD), China (+19.7% YTD), and Singapore (+19.2% YTD) stocks. China has rebounded sharply in the second half of the year, supported by renewed optimism around top-down policy measures. Singapore’s stocks recorded their best year since 2017, driven by strength in the Financial sector, with the banks trio of DBS, OCBC and UOB contributing to more than half of the STI’s weighting and performance.

Conversely, South Korea (-19.9% YTD) was the region’s worst-performing market. Weakness in its semiconductor sector, compounded by a series of domestic political crises that include a failed attempt to impose martial law, has spurred concerns over prolonged political instability. This uncertainty weighed on investor sentiment and raised fears about its potential impact on Korea’s global credibility and economic prospects.

Source: Bloomberg.

The S&P 500 sectors delivered mixed performance in 2024, with the top line being contributed by the growth sectors – i.e. Communication Services (+40.2% YTD) and InfoTech (+36.6% YTD), in addition to the Financials (+30.5% YTD). These sectors benefited from monetary policy easing, strong earnings from key players, and alignment with long-term growth drivers such as AI, semiconductors, and digital innovation. The key catalysts for Financials are also clear as well given the stronger-than-expected economic growth, expectations of deregulation under Trump, attractive valuations, and lower interest rates.

In contrast, Materials (+0% YTD), Healthcare (+2.6% YTD), and Real Estate (+5.2% YTD) were the worst-performing sectors. The global economic uncertainty dampened demand for commodities and materials, which typically struggle during economic slowdowns. Healthcare underperformed due to its defensive nature and heightened concerns about regulatory risks, including fears surrounding the potential appointment of vaccine skeptic Robert F. Kennedy Jr. as head of the Department of Health and Human Services, which weighed on insurers and pharmaceutical stocks. Real Estate lost momentum in December, surrendering most of its gains for the year, as concerns about a potential pause in rate cuts negatively impacted the sector.

 

Source: Bloomberg.

The global REIT markets faced significant pressure in December, surrendering most of their gains as the prospect of a higher-for-longer interest rate environment weighed on sentiment. Slower-than-expected rate cuts further dampened the outlook, leaving most REIT markets in negative territory for the year. Exceptions included the US (+8.8% YTD), Australia (+7.3% YTD), and Thailand (+7.4% YTD). Conversely, REITs in Japan (-14% YTD) and the UK (-13.5% YTD) were the worst performers, while Singapore REITs declined sharply by 9.5% MTD, reflecting investor concerns over rising borrowing costs and cap rate adjustments.

Despite near-term challenges such as high borrowing costs and cap rates, our medium-to-long-term outlook for the REIT sector remains positive, underpinned by the high quality of underlying assets. SREITs stand out with a globally competitive yield spread of 2.9%, third only to Thailand and Japan. Valuations are also very attractive relative to historical averages with the sector trading at a Price-to-Book ratio of 0.86. This presents a compelling opportunity for investors seeking value appreciation and stable income. We continue to favor operationally resilient and recession-proof subsectors such as Industrial and Data Centers, which are well-positioned to navigate economic uncertainties and support sustained performance. Singapore-focused Retail and Grade-A Office players are also poised to benefit from resilient domestic demand, limited new supply in the next 3-5 years, and potential upside from current valuation mispricing.

EQUITY INCOME UPDATE

Source: Bloomberg.

The stock market shifted toward a more risk-on sentiment, with the VIX declining by 581 basis points month-on-month, aligning with its three-month average. Meanwhile, the steeper rise in the 10-year Treasury yield compared to the 2-year reflects growing investor skepticism about the economy’s long-term growth prospects. Additionally, the slight widening of credit spreads signals a reduced risk appetite in the corporate bond market.

Source: Bloomberg.

The current economic landscape is marked by concerning signals. The ISM Manufacturing PMI contracted sharply to 47.2 in August, indicating continued weakness in industrial activity. Inflation data also highlights persistent challenges, with increases in both Core CPI and PPI. The Personal Consumption Expenditures (PCE) index, a key metric for the Federal Reserve, has remained elevated at around 2.7% year-over-year for six consecutive months, well above the Fed’s 2% target.

Our outlook for the equity market in the coming year remains positive, as opportunities are expected to outweigh the risks. That said, it is important to recognize the challenges posed by a higher-for-longer interest rate environment, driven by persistent inflationary pressures and strong economic growth. US GDP growth stood at a solid 2.8% year-over-year by the third quarter of 2024, bolstered by strong consumer spending and income growth. Inflation risks could further intensify if President-elect Trump’s proposed tariffs are implemented, adding further upward pressure on prices. Furthermore, geopolitical instability remains another key risk, potentially triggering a flight to safety, though its impact will likely be region-specific and may even benefit certain equity sectors, such as Aerospace and Defense. Encouragingly, Trump has indicated a willingness to resolve ongoing conflicts, beginning with the war in Ukraine.

On the opportunity front, significant liquidity remains untapped, with approximately $7 trillion in money market funds poised to flow into equities. Corporate fundamentals also remain robust, as evidenced by strong third-quarter earnings reports – 75% of S&P 500 companies surpassed EPS expectations, while 61% exceeded revenue estimates. Markets broadening out and diversifying into the small-caps stocks is an inevitable trend as their earnings are expected to outpace large caps. Lower interest rates are set to reduce funding costs, enhancing the appeal of small caps by making long-term earnings trajectories more attractive. Furthermore, Trump’s pro-growth policies present additional opportunities; as small caps derive a smaller share of revenue from international markets compared to large caps, potential trade barriers could bolster their relative competitiveness.

However, it would be premature to discount Big Tech in this environment, given the persistent economic uncertainties that could shift market sentiment quickly. Big Techs continue to exhibit strong defensive qualities, supported by robust cash flow generation and substantial cash reserves, positioning them to navigate economic downturns effectively. Their minimal reliance on external borrowing further enhances their appeal, particularly in a prolonged high-interest-rate environment. Historically, Big Tech has also outperformed in low-interest-rate scenarios, which could prove advantageous when the Federal Reserve starts loosening its monetary policy aggressively. Moreover, as the largest investors in AI, these companies are set to reap early benefits from its transformative potential. The AI trade is broadening, with optimism growing around its ability to enhance productivity across early-adopting sectors. This transformation could lower unit labor costs and potentially reduce core inflation to levels below current market expectations. As AI’s impact on earnings is only beginning to materialize, we remain optimistic about its long-term ability to drive growth and reshape industries.

 

CHINA MARKET UPDATE

China’s gross domestic product (GDP) is expected to expand around 5 percent for the full year of 2024 contributing to 30% of global growth. The precise figure will not be available until February 2025. Initially, this 5% target was seen as a “target without a plan” but its outlooks improved as policymakers rolled out stimulus.

Mr. Xi commented that China’s economy was “overall stable and progressing amid stability” at a New Year’s event on Jan 1, according to a speech published by the official Xinhua news agency. Mr Xi signalled that support for the economy will continue into 2025 during the New Year’s Eve remarks to the nation’s top political advisory body, reiterating a call to adopt more proactive macroeconomic policies.
Officials at key meetings in December pledged to use greater public borrowing and spending as well as monetary easing to spur growth in 2025, in an unusually direct call that sought to boost confidence. They endorsed the first shift in monetary policy stance in 14 years to a “moderately loose” one.

But the economy is still weighed down by weak domestic demand and an uncertain outlook for exports, which have been a key growth driver in 2024. Deflation is likely to persist well into 2025, while the property market is still slumping.

In December, Beijing implemented further policy easing measures, such as lowering interest rates on mortgage loans and expanding subsidies for first-time buyers in lower-tier cities. Despite these efforts, the property market faces a long road to recovery, and there are concerns over the rising inventory of unsold homes.

The digital yuan (e-CNY) has seen broader adoption, with more pilot programs across Chinese cities. By December 2024, cross-border transactions using digital currency were being tested, a major step toward China’s goal of internationalizing the yuan.

Beijing’s initial stimulus in 2025 is expected to fall short of this kind of radical action. Market Analysts believe is required to stem the downward spiral in prices, but officials may step up support later when growth falters, just as they did in 2024.

 

FIXED INCOME UPDATE 

Source: Bloomberg; Returns are presented in USD terms

Source: Bloomberg; Returns are presented in USD terms

December 2024 saw significant turmoil in the bond markets with most of the major indices ending the month in the red. On Dec 18 2024, the FED cut its key interest rate by 25 bps, bringing it to a target range of 4.25%-4.5%, but also indicated that the pace of future rate cuts would be more gradual than previously anticipated. This readjustment in rate cut expectations clearly rattled the market and precipitated a further selloff in treasuries to cap off what has been a challenging and volatile year for bonds. The gulf in returns between fixed income and equities in 2024 was also notably wide, with the S&P 500 returning approximately 25% while US bonds as measured by the Bloomberg US Aggregate Bond Index had a more muted return of about 1.8%. The Bloomberg Global Aggregate Bond Index was also a major underperformer, returning -0.9% on an unhedged basis, though on a hedged basis, its return of 3.75% was slightly better.

2024 was a year typified by two contrasting extremes in the bond markets. The mid-year period saw strong rallies across major bond indices driven by falling inflation and hence optimism around the likelihood of an interest rate cut by the FED in September. However, towards the end of the year, bond markets sold off sharply as they adjusted to the new realities of potentially higher inflation and a slower pace of future rate cuts. The best-performing fixed-income sub-asset classes in 2024 were clearly high-yield and emerging market bonds which were the biggest beneficiaries of the risk-on sentiment especially in the middle of the year.

As we conclude the year, let us reflect on the performance of various fixed-income sub-asset classes in 2024 and explore the risks and opportunities that lie ahead in 2025.

 

“2024 Fixed Income Performance Review: High Yield and Emerging Market Bonds Shine Amid Market Volatility”

In 2024, the fixed-income market witnessed a wide range of performance across its sub-asset classes. While high-yield and emerging market bonds led the way with impressive returns, developed markets, and Singapore bonds struggled to keep pace.

 

Outperformers:

1. High Yield Bonds: These bonds had a strong performance in 2024, with returns of around 9.58% based on the Bloomberg US 1-3 Year High Yield Index. According to Bob Michele, global head of fixed income at JPMorgan Asset Management, the outperformance in high-yield bonds was driven by stronger corporate profitability and the soft economic landing that kept default rates low and recovery rates high. In fact, according to Northern Trust Asset Management, the proportion of BB and B-rated issuers relative to CCC-rated issuers was higher compared to its 20-year average which improved the overall credit quality of high-yield bonds and reduced the risk of defaults. Separately, bank AT1 debt was also another segment that performed well in 2024.

However, looking ahead to 2025, high-yield bonds could face challenges due to higher refinancing costs if interest rates remain elevated. Investors will need to pay closer attention to the balance sheet strength of issuing firms, focusing on metrics such as free cash flow and strong interest coverage ratios to ensure the creditworthiness of such firms. High yield spreads also remain at record tight levels which could prompt some investors to question the risk-reward of staying invested in this space especially if economic conditions were to deteriorate.

2. Emerging Market Bonds: Emerging market bonds had a solid year in 2024, benefiting from higher yields and strong economic growth in key markets with the Bloomberg Emerging Market USD Aggregate Index producing a respectable 7.0% annual return.

    • India: These bonds performed well, driven by several factors. Significant foreign capital inflows resulted from the inclusion of Indian Government Bonds in the JPMorgan-Emerging Market Bond Index. However, risks in 2025 include potential foreign institutional investor (FII) outflows and further rupee depreciation. “For 2025, foreign inflows into the Indian government bond market are expected to remain strong but may not match the record levels of 2024,” remarked Wei Li from BNP Paribas SA.
    • China: Chinese bonds also showed strong returns, influenced by aggressive monetary and fiscal easing measures implemented by the People’s Bank of China. The economic recovery theme and low inflation contributed to higher real yields, attracting investors. Looking ahead, China’s key risk for 2025 includes potential tariffs resulting from ongoing trade tensions.

 

Laggards:

  1. Developed Market Bonds: Developed market bonds produced a more modest return in 2024. While interest rate cuts by developed market central banks were generally expected to benefit bond prices by lowering yields, the situation in 2024 was somewhat unique. The cuts were largely driven by easing inflationary pressures, which should have been positive for bonds. However, the market’s reaction was influenced by other factors, such as concerns about future inflation and economic growth. This led to a rise in inflation expectations, which negatively impacted bond prices. The longer durations of developed market bonds also made them more sensitive to rate changes, leading to greater price declines. Other idiosyncratic developments such as the political crisis in France, UK’s mini-budget debacle as well as policy normalization in Japan adversely affected bonds prices in these countries.
  2. Singapore Bonds: These bonds underperformed slightly, with the iBoxx SGD Overall index returning about 4.2% in SGD terms but only about 1.1% in USD terms. The performance of Singapore bonds was affected by several local economic factors, including slower economic growth and market volatility. Additionally, the relatively lower yields compared to other regions made Singapore bonds less attractive to investors seeking higher returns. The Singapore bond market presents promising opportunities heading into 2025. One key factor is the government’s decision to raise the issuance limit for government securities to $1.5 trillion. This increase is expected to deepen the bond market, enhance liquidity, and attract a broader range of investors. Additionally, the Monetary Authority of Singapore (MAS) could potentially reduce the slope of the S$NEER policy band due to easing inflationary pressures. This adjustment can support economic growth and create a favourable environment for bond investments.

Looking ahead to 2025, investors should be aware of potential risks and opportunities in the fixed-income market. Economic conditions, interest rate changes, geopolitical tensions, and policy shifts will all play crucial roles in shaping the performance of these sub-asset classes.

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This Website, its services and contents are provided for your use by PhillipCapital, which is a group of companies who together offer a full range of financial services to retail, corporate and institutional customers. Member companies in Singapore include Phillip Securities Pte Ltd, Phillip Securities Research Pte Ltd, Phillip Financial Pte Ltd, Phillip Futures Pte Ltd, Phillip Trading Pte Ltd, Phillip Capital Management (S) Ltd, Phillip Private Equity Pte Ltd, Phillip Japan Fund Management Pte Ltd, CyberQuote Pte Ltd, IFS Capital Limited and ECICS Limited. Member companies can otherwise be identified by their authorised use of PhillipCapital brand name along with their own name in their documentation and literature.

Use of Information and Materials

The contents of this website are provided to you for general information only and should not be used as a recommendation or basis for making any specific investment, business or commercial decision. These pages should not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the securities, and specifically funds or any investment products, mentioned herein, or, in any jurisdiction to any person to whom it is unlawful to make such an invitation or solicitation in such jurisdiction. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of you acting based on this information. Unit trusts distributed by Phillip Securities Pte Ltd are not obligations of, deposits in, or guaranteed by, Phillip Securities Pte Ltd or any of its affiliates. All applications for units in a unit trust must be made on application forms accompanying the relevant prospectus. You should read the prospectus before deciding to subscribe for units in the respective fund. A copy of the prospectus can be obtained from Phillip Securities Pte Ltd or online at www.poems.com.sg/unittrust.

Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units in any fund and the income from them may fall as well as rise. If the investment is denominated in a foreign currency, factors including but not limited to changes in exchange rates may have an adverse effect on the value, price or income of an investment. Past performance figures as well as any projection or forecast used in these web pages, are not necessarily indicative of future or likely performance of any investment products.

The information contained in these pages is not intended to provide professional advice and should not be relied upon in that regard. It also does not have any regard to your specific investment objective, financial situation and any of your particular needs. You may wish to obtain advice from a qualified financial adviser, pursuant to a separate engagement, before making a commitment to purchase any of the investment products mentioned herein. In the event that you choose not to obtain advice from a qualified financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest and we do not offer any advice in this regard unless mandated to do so by way of a separate engagement.

You are advised to read the Applicable Conditions governing each account and the relevant Risk Disclosure Statement, if any, carefully before investing in any of our products. The contents of this website, including these terms and conditions, are subject to change and may be modified, deleted or replaced from time to time and at any time at the sole and absolute discretion of PhillipCapital.

Timeliness, accuracy and completeness of information

In particular, we assume no responsibility for or make any representations, endorsements, or warranties whatsoever in relation to the timeliness, accuracy and completeness of any services, content, information and/or data contained in the Website, whether provided by us, any content providers or third parties.

Copyright

PhillipCapital and/or its member companies reserve all copyright and intellectual property rights to the services, content, information and data on the Website. The contents in the Website are protected by copyright and no part or parts hereof may be modified, reproduced, stored in a retrieval system, transmitted (in any form or by any means), copied, distributed, published, displayed, broadcasted, hyperlinked, used for creating derivative works or used in any other way for commercial or public purposes without the prior written consent of PhillipCapital and/or its member companies.

No Warranties

While every care has been taken in preparing the contents contained in the Website, such contents are provided to you “as is” and “as available” without warranty of any kind either express or implied. In particular, no warranty regarding non-infringement, security, accuracy, fitness for a particular purpose or freedom from computer virus is given in conjunction with such contents. Member companies of PhillipCapital, their directors, officers, associates, agents and affiliates make no representations, endorsements or warranties of any kind about the services, content, information and/or data contained in the Website.

Separate Contracts

The provision of any service or products provided by PhillipCapital and/or its member companies through the Website shall be expressly subject to the particular terms and conditions as contained in the contract for the supply of such service or product. Any warranties or representations made in relation to the provision of such service or product are as made in the contract only and PhillipCapital and/or its member companies make no separate warranty or representation through the Website or through these general terms of use.

Exclusion of Liability and Indemnity

In no event shall PhillipCapital and/or its member companies be liable to you for any loss, damage, costs, charges and/or expenses of whatsoever nature and howsoever arising including legal fees on a full indemnity basis, cost of funding and loss or cost incurred by you as a result of or in connection with:

  1. any access, use or the inability to access or use this website, use of or reliance on the contents of this website;
  2. any transaction performed on any web page in the Website;
  3. any loss or abuse or unauthorized disclosure of information, including customer information;
  4. any system, server or connection failure, error, omission, interruption, interception, delay in operation or transmission, or computer virus;
  5. any use of or access to any websites linked to the Website;
  6. any service, product, information, data, software or other materials obtained from this Website or from any other websites linked to this Website;
  7. breach or violation of any third party rights, including but not limited to the violation of any proprietary or intellectual property rights or the enforcement of any of these general terms of use.

Governing Law

These general terms of use shall be governed by and construed in accordance with the laws of the Republic of Singapore and all parties hereby agree to submit to the exclusive jurisdiction of the courts of the Republic of Singapore.

Products and services referred to in this website are offered only in jurisdictions where and when they may be lawfully offered by PhillipCapital and/or its member companies. The contents in the Website are not intended for use by persons located in or resident in jurisdictions that restrict the distribution of such materials by us. Persons accessing these pages are required to inform themselves about and observe any relevant restrictions. The terms and conditions governing the use of the Website of each member company of PhillipCapital may differ and you should consult and carefully read the applicable terms and conditions before using the website.

Privacy and Security

  1. Our CommitmentWe believe in protecting your privacy. We ask that you read this privacy policy carefully as it contains important information about what to expect when we collect personal data about you and how we will use your personal data.
  2. Types Of Personal DataGenerally, we collect personal data that is linked to an individual. For example, an individual’s name, address, phone number and email address. This is not an exhaustive list and we may collect other types of personal data from you.

    Apart from personal data, we may collect other types of information which is not linked to an individual and which is anonymous. For example, the number of website visitors and the number of website users using a particular service. In this way, we hope to improve our customer services.

  3. Purpose For Collection, Processing And Disclosure Of Personal DataCollectionGenerally, personal data is collected for the following purposes: providing a service and / or a product to you; and legal compliance on our part under applicable laws.

    Processing and disclosureWe may process and disclose personal data with and to group companies or business partners or third party service providers, for the purposes stated above.
    In addition, there may be circumstances under applicable laws where we are permitted to collect, process and disclose personal data without your consent. You may obtain more information by contacting us (Please see contact details on our website under “Contact Us” tab).

  4. Transfer Of Personal Data OverseasTo the extent that we may need to transfer personal data outside of Singapore, whether to our group companies or business partners or third party service providers or simply to data storage facilities, we shall do so in accordance with the Personal Data Protection Act, 2012 (“PDPA”) to ensure that we provide a standard of protection to personal data so transferred that is comparable to the protection under the PDPA.
  5. ConsentGenerally, when we request for personal data in the course of providing you a service and/or product and you provide use with such personal data, there is implied consent that you agree to provide us with personal data in order for us to provide you with the requested service and / or product.
    In some circumstances and as required by applicable laws, we will seek your express consent when collecting your personal data. For example, where there are new purposes for the use of your personal data, we will seek your fresh consent.
    In addition, you are able to withdraw your consent at any time by contacting us (please see contact details on our website under the ‘Contact Us’ tab).
  6. Situations Not Requiring ConsentWe will not sell, rent or otherwise disclose your personal data to any third party, without your consent except in the following circumstances:
    we may share non-personal, non-individual information in aggregate form with third parties for business purposes, for example with advertisers on our website or we may tell our business partners the number of customers in certain demographic groups who purchased certain products or who carried out certain transactions; and / or as permitted under the laws of Singapore.
  7. Access And CorrectionYou are entitled to certain access and correction rights to your personal data. We may charge a reasonable administrative fee for this service. In exceptional circumstances, we reserve the right to deny you access to your personal data and may provide an explanation as required by applicable laws.
  8. RetentionPersonal data will be held for as long as it is necessary to fulfil the purpose for which it was collected, or as required or permitted by applicable laws. We shall cease to retain personal data, or remove the means by which the personal data can be associated with particular individuals, as soon as it is reasonable to assume that the purpose for which that personal data was collected is no longer being served by retention of the personal data and retention is no longer necessary for legal or business purposes.
  9. AccuracyIn order to ensure that your personal data is current, complete and accurate, please update us of any changes to your personal data by contacting us (please see contact details on our website under the ‘Contact Us’ tab) or by logging on to your user account if you are a registered user on our website.
  10. Data SecuritySecurity is our top priority. PhillipCapital and/or its member companies will strive at all times to ensure that your personal data will be protected against unauthorized or accidental access, processing or erasure. We maintain this commitment to data security by implementing appropriate physical, electronic and managerial measures to safeguard and secure your personal data. You are advised to go directly to the domain name of PhillipCapital www.phillip.com.sg or www.poems.com.sg when logging onto POEMS website. You should not accept links or redirections from other websites or media for the purpose of logging onto the POEMS website.
    • The secure area of our website supports the use of Secure SocketLayer (SSL) protocol and 128-encryption technology – an industry standard for encryption over the Internet to protect data. When you provide sensitive information, it will be automatically converted into codes before being securely dispatched over the Internet.
    • The secure area of our website supports the use of Secure SocketLayer (SSL) protocol and 128-encryption technology – an industry standard for encryption over the Internet to protect data. When you provide sensitive information, it will be automatically converted into codes before being securely dispatched over the Internet.
    • Only your valid User ID and Password, which identify you uniquely, will allow you to log in to our secure website(s). This ensures that messages from authorized users only are admitted into our secure site(s).
    • All practical steps will be taken to ensure that personal data will not be kept longer than necessary and that PhillipCapital will comply with all statutory and regulatory requirements in Singapore concerning the retention of personally identifiable information.
  11. Security AssuranceWe endeavour to put in place high standards of security to protect your interests. You are responsible to ensure that your User ID and/or Password are not compromised by knowingly or accidentally sharing, providing or facilitating unauthorized use of it. Failure to do so exposes you to the risks of fraud and loss. PhillipCapital and/or its member companies will not be responsible for losses suffered by customers as a result of:

    a. input errors or misuse of its internet services;
    b. negligent handling or sharing of Password;
    c. leaving a computer unattended during an online session;
    d. failure to immediately report known accidents of unauthorized account access.Member companies of PhillipCapital will never ask you for your Password. In order to ensure that you are the only person who knows this information:

    • You should safeguard your unique User ID and Password by keeping it secret and confidential. Do not share your User ID and Password with anyone or write them down, as you are responsible for all transactions undertaken with your User ID and Password.
    • Ensure that no one can see your Password when you log in to our system.
    • When choosing your Password, do not create it using easily identifiable information such as your birthday, telephone number, a recognizable part of your name, spouse’s name, dictionary words, common character sequences such as “123456”, licence plate number, passport number, social security number. The user-chosen password must have at least six (6) characters and are best recommended to be alphanumeric.
    • Change your Password regularly. Do not recycle your recently used Password.
    • The same Password should not be used for different websites, applications or services particularly when you relate to different entities.
    • Do not select the option on your browser for storing or retaining User ID and Password.
    • If you think your User ID and/or password has been disclosed to a third party, is lost or stolen and unauthorized transactions may have been conducted, you are responsible to inform us immediately.
    • You should log out of your online trading session when you have completed your online trading transactions or when you need to walk away from your computer even for just a while. Do not leave your computer unattended while online trading transactions are being processed.
  12. Security Measures To Prevent Keystrokes Being CapturedIt is advisable to take the necessary precautions to protect your personal computer against viruses and other malicious programs. Besides damaging and/or destroying data, viruses and malicious programs can capture your Password keystrokes and other personal information and send them to another person without your consent. Some precautions to take:
    • Ensure that you install an effective personal firewall, anti-virus, anti-spyware as well as anti-Trojan horse software. These should be updated regularly.
    • Do not download any software from a website that is of doubtful origin.
    • Do not open any email or attachment that is from a source unknown to you. When in doubt, delete such email without opening it.
  13. Alert on PhishingThere have been fraud cases connected with the scam known as ‘phishing’. The scam makes use of unsolicited emails and/or fraudulent websites to trick people into disclosing confidential personal details such as user-names and passwords. You are advised to stay alert to avoid falling prey to the following scam techniques used by fraudsters:
    • Use of false email addresses, logos and graphics to mislead people into accepting the validity of emails and websites;
    • Faking domain names to appear as if they represent the actual companies;
    • Duping people into providing personal details through one or more methods such as hyperlinks to fake websites or embedded forms in emails.
  14. Clearing Your CacheWe strongly advise that you clear your browser’s disk cache after each online trading session.
    Cache files on a computer can retain images of data sent or received over the Internet, making them a potential target for a system intruder.
  15. Updates To Privacy PolicyWe keep our privacy policy under regular review. If we change our privacy policy, we will post the changes on this website, so that you may be aware of the information we collect and how we use it. Such changes to our privacy policy shall apply from the time that we post the same on this website. Your continued use of our website will be taken as acceptance of the updated privacy policy, but we will seek your fresh consent before we collect more personal data from you or we wish to use or disclose your personal data for new purposes.
  16. CookiesA cookie is an alphanumeric identifier which we transfer to your hard drive through your web browser when you visit our website. It enables our own system to recognise you when you visit our website again and improve our service to you. The information is used to track visitor use of the website and to compile statistical reports on website activity. For further information about cookies visit www.aboutcookies.org or www.allaboutcookies.org. Cookies may also be used to compile aggregate information about areas of our websites that are visited most frequently. This traffic information can be used to enhance the content of our website and make your use of it easier. If you wish to reject our cookie, you can configure your browser to do so. However, in a few cases some of our website features may not function if you remove cookies from your browser.
  17. Hyperlinks from PhillipCapital to Third Party WebsitesPhillipCapital and/or its member companies are not responsible for the contents available on or the set-up of any other websites linked to our websites. These hyperlinks lead to websites published or operated by third parties who are not affiliated with or in any way related to PhillipCapital and/or its member companies. Access to and use of such other websites is at the user’s own risk and subject to any terms and conditions applicable to such access/use.
    By providing hyperlinks to a third party website or webpage, PhillipCapital and/or its member companies shall not be deemed to endorse, recommend, approve, guarantee or introduce any third parties or the services/products they provide on their websites, or to have any form of cooperation with such third parties and websites unless otherwise stated by PhillipCapital and/or its member companies.
    We are not in any way responsible for the content of any third party website or webpage. PhillipCapital and/or its member companies is/are not a party/parties to any contractual arrangements entered into between you and the provider of the third party website unless otherwise expressly specified or agreed to by PhillipCapital and/or its member companies.
    Any links to websites that contain downloadable software are provided for your convenience only. We are not responsible for any difficulties you may encounter in downloading the software or for any consequences from your doing so. Please remember that the use of any software downloaded from the Internet may be governed by a licence agreement and your failure to observe the terms of such licence agreement may result in an infringement of intellectual property rights of the relevant software provider, which we are not in any way responsible.
  18. Hyperlinks from Third Party Websites to PhillipCapitalYou must always obtain the prior written approval of PhillipCapital and/or its member companies before creating a hyperlink in any form from a third party website to any PhillipCapital website or webpage. PhillipCapital and/or its member companies may or may not give such approval at its absolute discretion.
    PhillipCapital and/or its member companies is/are not responsible for the setup of any hyperlink from a third party website to any PhillipCapital website or webpage. Any links so set up shall not constitute any form of co-operation with, or endorsement by, PhillipCapital and/or its member companies of such third party website. Any link to our Website shall always be an active and direct link to our Website and no “framing” or “deep-linking” of our web page or content is allowed, unless prior approval by PhillipCapital.
    PhillipCapital and its member companies are not liable for any loss or damage incurred or suffered by you or any third party arising out of or in connection with such link. PhillipCapital and/or its member companies reserve the right to rescind any approval granted to link through a plain-text link or any other type of link, and to require the removal of any such link to any PhillipCapital websites, at our discretion at any time.
  19. EmailEmail messages sent to PhillipCapital or any of its member companies over the Internet cannot be guaranteed to be completely secure. PhillipCapital will not be responsible for any damages incurred by users if they send a message to PhillipCapital or any of its member companies, or if PhillipCapital or any of its member companies sends a message to them at their request, over the Internet. PhillipCapital or any of its member companies are not responsible in any manner for direct, indirect, special or consequential damages arising out of the use of this Website. If you encounter any suspicious email, passing off as an email from POEMS or Phillip, please notify us immediately at (65) 65311555.
  20. Transmission Over The InternetDue to the nature of the Internet, transactions may be subject to interruption, interception, transmission blackout, delayed transmission and incorrect data transmission. Regardless of any security measures taken by us, PhillipCapital and/or its member companies shall assume no responsibility whatsoever for any loss or expense resulting from such delays, interruptions and/or interceptions.
  21. DownloadingWe do not represent or warrant that this website will be available and meet your requirements, that access will not be interrupted, that there will be no delays, failures, errors or omissions or loss of transmitted information, that no viruses or other contaminating or destructive properties will be transmitted or that no damage will occur to your computer system.
    You have sole responsibility for adequate protection and back up of data and/or equipment and for undertaking reasonable and appropriate precautions to scan for computer viruses or other destructive properties. We make no representations or warranties regarding the accuracy, functionality or performance of any third party software that may be used in connection with the website.
  22. English Version to PrevailIf there are inconsistencies in meaning between the English version of these terms and conditions and the terms and conditions as may be translated into any other language, the English version shall prevail.
  23. Prevailing TermsIf you have agreed to our terms and conditions of account opening, as the case may be, in the event of inconsistency between such terms and conditions and this privacy policy, such terms and conditions of account opening shall prevail.
  24. Governing LawNote that as we are a Singapore registered company, this privacy policy has been drafted solely in accordance with the laws of Singapore. We do not represent or warrant that this privacy policy complies with the privacy laws of any other jurisdiction and accordingly, you shall not construe this privacy policy as such.
  25. Contact UsIf you any comments or questions about this privacy policy, please contact the Data Protection Officer in writing (please see contact details on our website under the ‘Contact Us’ tab) referencing ‘Privacy and Security’.
  26. DisclaimerOur website may contain links to other websites. Please note that we are not responsible for the privacy practices of such other websites and advise you to read the privacy statements of each website you visit which collects personal data.
  27. IMPORTANT:By accessing this website and any of its pages you are agreeing to the terms set out above.