Tuesday, July 10, 2018

SINGAPORE STOCKS MARKETS: WHY WE ARE BACK TO YEAR 2016?


SINGAPORE STOCKS
Dear readers, yesterday, Singapore stocks markets erased the declines it has been chalking thus far with the Singapore stocks markets benchmark STI up by a decent 1.16%. Some investors are thinking that now is the time to bargain-hunt for some good stocks since stocks markets have corrected recently and yesterday’s showing of the Singapore stocks markets seemed to indicate that Singapore stocks markets have bottomed out and are poised for a rebound.

Not yet, says Tom K (myself).


Given that the Singapore stocks markets have been correcting off what was an apparent high base built upon year 2017 of good showing of global stocks markets, the current Singapore stocks markets are still considered high and further downsides to Singapore Stocks Markets are still possible.

I want to remind readers that the current Singapore stocks markets is such that the current price of DBS stock , OCBC stock and UOB stock is $25.71, $11.31 and $26.51 respectively. We are no longer talking about a low of Singapore stocks markets where one could buy DBS stock at around $11 a share and OCBC at $8.00+ per share.

I still recall buying OCBC stocks at slightly above $8 per share some years back and that was when I thought the Singapore stocks markets is at a reasonable low price.

The STI ETF which tracks the STI is now below the 300-Days-Moving-Average and the last time the ETF was below the 300-Days-Moving-Average was Jul 2016. That means we are now back to a level of the Singapore stocks similar to two years back but then the STI ETF traded at around $2.80 compared to the current $3.20+.

I leave it to you readers to form a view of the current Singapore stocks markets: whether it is at the inflexion point of regaining back to the 3,600 level or at the start of a longer term downtrend.

The fact that we have more macro factors at play now: trade tensions, US interest rate hikes and some geo-political developments in my opinion means that the Singapore stocks would go lower.

My target is 2,880 for the STI. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.


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