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June 29, 2005S'pore investors 'too careful'

TAIPEI (Taiwan) - Taiwanese and Hong Kongers are more sophisticated investors than the Singaporeans who tend to weigh risks against profits a little too carefully, according to a new survey.

The survey of 2,500 fund and stock investors in the three Asian markets was commissioned jointly by financial firms Citigroup, Alliance Capital Management and Permal and released on Tuesday.

Investors in Hong Kong are bold in purchasing stocks and funds while they take their investment losses more calmly, Citigroup said in a statement.

Their Taiwanese counterparts 'are fairly willing to take an investment chance (but) feel most unhappy about' investment losses, it said.

'Singaporeans are ... inclined to sell performing investments too soon and hold onto their underperforming investments for too long,' it said.

'They are less savvy in combining different financial decisions in a portfolio approach, focusing instead on gains and losses of individual opportunities,' it said.

But compared to Americans, investors in the three major Asian markets display a high degree of overconfidence, overestimating their own ability to play the financial markets, it said.

'Asian investors see financial advisers as sources of hot financial tips, rather than long-term financial planning,' it said.

The Asians are influenced more by emotions and 'have a tendency to trade too much and too frequently', it said.

The telephone survey of 2,591 investors was conducted in April and May, the Citigroup said. -- AP