Dear readers, there are currently eight oversold Straits Times Index (STI) stocks as the Straits Times Index continue to hover around the 2,500 mark.
With a noteworthy move in their stock prices, Sembcorp Industries stock and SPH stock found themselves among the most oversold Straits Times Index stocks yesterday. Sembcorp Industries dived 9.9% while SPH stock dived 12.3% yesterday. Looking at their current stock prices, the prices were indeed very humble as they were a mere fraction of what the two former so-called blue-chip heavyweights in their heydays traded. Both counters are also undervalued (Sembcorp Industries’ Price-to-Book was 0.392 while that for SPH, the ratio was 0.603) but without a compelling proposition for long-term investing, investors may not want to look too much into these two stocks. SPH has been trying hard to diversify out of the seeming sunset publishing business. While for Sembcorp Industries stock, I really believe a growth narrative will be for some consolidation and merger with the Keppel group of family.
Speaking about challenging businesses, SIA stock is similarly oversold now and at the same time undervalued (Price-to-Book of 0.69). Similarly, for Singtel stock, its $2.49 stock price is one of the lowest in the recent five year as it becomes oversold. Joining the ranks of oversold Straits Times stock is also the bourse operator stock SGX stock itself. I do not know much about the business of SGX since I always think of it as a regulator first.
Last but not least, the remaining three oversold Straits Times Index stocks are stocks related to Hong Kong. With the ongoing geo-political developments in HongKong, it seems natural that some HongKong related stocks are oversold. These oversold stocks are DariyFarm stock, JMH USD stock (which is also undervalued with a Price-to-Book ratio of 0.488) and JSH stock (which is also undervalued with a Price-to-Book ratio of 0.62). JMH stock is trading at one of its lowest prices in recent years. It is also noteworthy that HongKong Land stock with its recent stock price gains have come out from the league of oversold stocks.
As I have always mentioned, oversold stocks do not necessarily mean that these stocks will head up soon. Investors could also “catch a falling knife” if the prices of these stocks continue to slide. But I always feel that a weekly scan for these oversold Straits Times Index stock is useful to determine the state of the Singapore stocks markets and hence I am bringing this series here on SG Stocks Investing.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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