Dear readers, how time flies, we are already into October of Year 2022. To cut the chase, the global stock markets have not crashed, though more and more signs are showing that stock markets will continue to be bearish for some time.
The Singapore stock markets, as measured by the Straits Times Index (STI) is now in negative territory for this year to date with the STI down by 2.7%.
While the performance of the STI is pretty much shaped by how the heavier-weighted banking stocks in DBS, OCBC and UOB performed, I have also been tracking the worst-performing STI stocks for the year.
I have noted how Keppel DC Reit has been the worst STI stock performer for many weeks or months this year until last week, when it was no longer so. With a 20.7% drop in stock price for SATS stock on just a single day last week, SATS stock is now the worst-performing STI stock for Year 2022 to-date, as of last Friday. Let us turn our attention to the three worst performing STI stocks and year-to-date total gain (including dividends if any) as follows.
SATS stock: -29.8%
Keppel DC Reit: -28.3%
Frasers Logistic and Commercial Trust: -24.9%
There is also one other STI stock that completes the list of STI stocks which has dropped over 20% in total gain for the year: Mapletree Logistics Trust with a year-to-date gain of -20.1%.
Of the four worst STI performers for the year, three of them are Singapore Reits and Trusts. This is understandable as on the back of higher interest rates for savers, Reits and Trusts are less attractive than before.
And the above statement is partly my answer as well to the question in the post title: while these worst performing STI stocks may have been sold down to the point of cheap, I will not be buying them since current stock markets are trending down in general and there is no incentive to buying these stock for capital gains when the possibility of such a gain is slim as versus putting my monies in the bank and earning good interest rates!
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