Investors keep ‘risk-off approach’ in November: analyst

The investor movement index (IMX) declined 4.17 in November 2022.

There is still a low exposure and risk-off approach for Singapore investors in November 2022 as the IMX went down from 4.25 to 4.17 month-on-month in November, TD Ameritrade Singapore said.

“We often see retail investors reducing exposure to the markets toward the end of the year, whether that be due to a desire to take profits, risk moderation, tax plays, or other factors,” said Greg Baker, CEO of online broker TD Ameritrade Singapore.

In 2022, the strength of the US dollar hogged the headlines but then the US dollar index fell in November, which eased currency pressures worldwide.

Baker said there could be subdued market volatility and inflation issues in the weeks and months ahead.

Net buyers

TD Ameritrade Singapore clients were net buyers of equities as they reduced their exposure last month.

Both Singapore clients and the overall TD Ameritrade client population bought Taiwan Semiconductor Manufacturing Company, which surged over 30% during the period following the strong October sales increase.

NVIDIA grew over 17% and posted earnings during the November period, “which both the TD Ameritrade Singapore client population and the overall TD Ameritrade client population apparently saw as an opportunity to sell into the chip maker’s recent strength.” 

Meta Platforms, the parent company of Facebook and Instagram, retrenched several employees as a cost-cutting measure amidst recent struggles, and “TD Ameritrade Singapore clients as well as the overall TD Ameritrade client population increased exposure in the name as it rallied over 12% during the period.”