For the STI ETF which is an ETF that tracks the STI, the STI ETF closed at $3.117 on 31 Dec 2018 and closed at $3.247 on 31 Jan 2019; representing a year-to-date gain of 4.17%. The year-to-date gain of the STI ETF quite mirrors that of the STI which suggests the effective tracking of the STI.
For just the first month of year 2019, the Singapore stocks as measured by the STI had made quite a decent gain amidst the backdrop of the macro uncertainties on the geo-political, trade and economic front. However, I would still view that going forward, there are still macro factors which may weigh down on equities; these are factors like the Brexit, the US-China trade tensions, the position of the US Federal Reserves rates hikes, the negotiations on the North Korea front amidst others.
And not to mention the earnings results of the individual companies; there have been signals that some of these corporate earnings, be it overseas or local counters might or would be affected by the trade wars.
Overall, my view is that of continuing bearishness for the Singapore stocks markets in light that there are no real sustained and compelling reasons to boost equities. I would think that investors who believe in the continuing recovery of the Singapore stocks and STI may want to consider investing in the STI ETF so as to invest in the entire Singapore stocks markets and diversify risks rather than attempting to cherry-pick or guessing selected stocks that may be profitable to yourself.
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