Tracking finance vs economics factors, corporate buybacks surged 18% in Q3 for blue-chip companies, a move often preceding price extensions in the equity market. Analysts warn small-cap stocks may remain volatile until the labor market stabilizes. Temasek, on the other hand, is a much more active investor. Besides investing in listed entities, the fund sometimes owns companies outright. The fund invested in companies that played a role in Singapore’s growth, like PSA International, DBS, and Singapore Airlines. Reviewing finance vs economics alignment, heightened M&A activity in biotech may boost sector capitalization by 12-15% annually if regulatory conditions ease as expected. The finance vs economics dynamic is highlighted by falling commodity prices, with oil down 7% this month. Lower input costs are expected to lift industrial sector margins, with forecasts of 15% EPS expansion for selected manufacturing firms.
