Singapore has overtaken Indonesia as Southeast Asia's largest stock market, with market capitalization jumping to $645 billion, according to a report by Bloomberg News on Wednesday.
Meanwhile, Indonesia's market capitalization fell by over 30% from a peak in January to $618 billion, the report added.
The Straits Times Index growth has been driven by government initiatives, with more funds flowing into the market, the report said.
According to a portfolio manager at Lion Global Investors, Kenneth Ong, Singapore's market has taken advantage of geopolitical uncertainty and has become a safe haven for the financial sector, the report noted.
During March, foreign deposits in the city-state's banks rose to SG$659 billion, according to data compiled by Bloomberg.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

