Friday, July 6, 2018

TOM K: I EXPECT THE SINGAPORE STOCKS TO GO SOUTH BY ANOTHER 10%

SINGAPORE STI STOCKS
Dear readers, the Singapore Stocks STI went south by 1.99% yesterday (6 Jul 2018) after the government announced a slew of cooling measures on the night of 5 Jul 2018 in relation to increased stamp duties, especially for purchase of the second and subsequent residential properties. Increased taxes for developments were also part of the government’s announcements too. Properties stocks were hit hard with CityDev down by 15.6% and recent property IPO debutant PropNex down by 24.638% to $0.52 which was much below its IPO price of $0.65.
Prior to the government’s announcement of cooling measures, Ravi Menon, MAS Chief has said on the day before the announcement (4 Jul 2018) that the euphoria in Singapore Properties call for caution.

And another contributing factor to yesterday’s showing of the STI was that yesterday was the date when the US and China imposed tax tariffs on each other’s goods. Thus, in all, the STI went south to the current 3,191.82.

I have set a target for the STI at 2,880 which means another 10% more for the STI stocks to head south. This 2,880 level was set by applying a 20% downside correction off the highest STI peak of 3,600 year-to-date. This year is not bullish for equities as compared to the bumper year of 2017 where stocks charted highs even if the stocks do turn around and head north, I believe the macro trend to take investors is south. 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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