Dear readers, as we navigate through the tumultuous waters of the Singapore stock market, it’s essential to take a moment to assess the current state of the Straits Times Index (STI). As of yesterday, the STI closed at 3,512.53. This figure stands in stark contrast to the recent all-time high of 3,972.43, which was achieved on March 28, 2025. The current closing price indicates a decline of approximately 12% from that peak—a significant drop that has left many investors feeling uneasy.
In light of this market carnage, it is crucial for investors to identify potential opportunities amidst the chaos. One effective way to gauge whether a stock is oversold is by examining its Relative Strength Index (RSI). An RSI below 30 often signifies that a stock is oversold, suggesting that it may be undervalued and potentially ripe for a rebound. With that in mind, let’s explore seven stocks within the STI that are currently exhibiting oversold conditions.
- City Developments Limited (CDL)
City Developments, a prominent player in Singapore’s real estate sector, has recently seen its stock price dip significantly. The RSI for CDL is currently below 30, indicating that the stock may be undervalued. With a diversified portfolio of residential and commercial properties, CDL has the potential for recovery as the real estate market stabilizes. - DBS Group Holdings
As one of Asia’s leading financial services groups, DBS has long been a favorite among investors. However, recent market trends have pushed its stock price down, resulting in an RSI below the 30 threshold. With strong fundamentals and a robust balance sheet, DBS is well-positioned to weather the storm and could present an attractive buying opportunity for long-term investors. - Mapletree Logistics Trust
Mapletree Logistics Trust, a real estate investment trust (REIT) focused on logistics properties, has also fallen victim to the market’s downturn. Its current RSI indicates oversold conditions. Given the increasing demand for logistics and warehousing spaces, particularly in the e-commerce sector, this trust could see a rebound as market conditions improve. - Mapletree Pan Asia Commercial Trust
Similar to its logistics counterpart, Mapletree Pan Asia Commercial Trust has seen its stock price decline significantly. The oversold condition, as indicated by its RSI, presents a potential opportunity for investors looking for exposure in commercial real estate across the Asia-Pacific region. The trust’s diversified portfolio could be a defensive play in uncertain times. - SATS Ltd
SATS, a leading provider of food solutions and gateway services, has faced challenges during this period of market volatility. Its stock has dropped to an RSI level below 30, indicating it is oversold. As travel and tourism gradually recover, SATS could benefit from increased demand for its services, making it a stock to watch for potential gains. - Seatrium
Seatrium, a prominent player in the marine and offshore engineering sector, has been adversely affected by the current market conditions. With its RSI indicating oversold status, there may be an opportunity for investors to capitalize on the eventual recovery of the maritime industry as global trade improves. - Venture Corporation
Venture Corporation, a provider of technology solutions, has also seen its stock price decline sharply. With an RSI below 30, it suggests that the stock may be undervalued. Given the company’s focus on innovation and technology, it could see a resurgence as economic conditions improve and demand for technology solutions increases.
In conclusion, while the current state of the Singapore stock market may seem daunting, it is crucial to remain vigilant and seek out opportunities. The seven stocks mentioned above, all exhibiting oversold conditions, could present attractive investment opportunities for those willing to engage in a long-term strategy. As always, potential investors should conduct thorough research and consider their risk tolerance before making any investment decisions.