SINGAPORE STOCKS: WHAT’S NEXT?

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STI, Singapore Stocks STISince my last update on my opinions of the Singapore stocks markets (you can read the post here ) , the Singapore stocks benchmark STI did not fail to disappoint Singapore investors with its continued lacklustre performance. As of 17 Aug 2018, the STI closed at 3,209.44 which is not far off from the 3,191.82 reached on 2 Jul 18.

I would continue to think that the STI would continue this downward movement to below 3,000 and thereafter to 2,880 on the back of macro developments. In fact, there is even more impetus to push global stocks markets including Singapore into more bear territory with the Turkish currency factor.

We already have macro factors like the continued trade tensions between US and other countries, especially China as well as the US’ Federal Reserves interest rate hike. With the Turkish currency factor, while many may dismiss this latest macro development as one-off affair, this development may be the start of another front which will continue to confront stocks markets and investors. This is because stocks markets and investors are not worried just about Turkey as a whole but about the broader emerging markets as a whole especially the Fragile Five economies that have become too dependent on foreign investments to finance their growth ambitions: Turkey, Brazil, India, South Africa and Indonesia. If the economies of emerging markets would to breakdown, one thing will lead to another and the result will be that the global stocks markets may be hit more. 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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