Dear readers, the Singapore Straits Times Index (STI) has recently achieved a remarkable milestone, reaching an all-time high of 4,087.10. This marks a significant psychological and technical threshold for the local market, reaffirming the strength and resilience of Singapore’s equity landscape amid a mix of global uncertainty and domestic optimism.
Euphoria in Singapore Markets
This surge in the STI is not entirely unexpected. The Singapore stock market has been buoyed by strong investor sentiment, underpinned by improving economic fundamentals, favorable interest rate expectations, and importantly, renewed momentum in the IPO (Initial Public Offering) market. After years of stagnation, the IPO pipeline has started to gain traction once more, injecting vibrancy into the Singapore Exchange (SGX) and broadening investor participation.
The most notable recent IPO is NTT Data Centre REIT (NTT DC REIT), which has drawn significant institutional and retail interest. Its successful listing set the stage for renewed confidence, attracting fresh capital into Singapore-listed equities.
Following close behind was Info-Tech Holdings, the second IPO of the year, which also garnered positive market reception.
Several other IPOs are now in the pipeline, including Lum Chang Creation, China Medical System, and Dezign Format. These listings represent a diverse mix of industries and are poised to expand SGX’s sector representation. This pipeline has added an element of growth and speculation that has historically been missing from the Singapore market, further energizing investor appetite.
But amidst the ongoing optimism, it’s crucial for investors to stay grounded. In any bull run, there are always pockets of over-exuberance. And in this current rally, some Straits Times Index component stocks appear to be technically overbought — suggesting caution may be warranted.
Amidst the euphoria on the Singapore stock markets, there are a number of Singapore stocks which have been rallying, a few which are close to being Overbought (RSI>70). But there are four STI stocks which are undoubtably Overbought and they are:
Hongkong Land
OCBC Bank
SIA
UOB
That’s All for today’s weekly Singapore stock scanner for Oversold and Overbought STI stocks, have a Good week ahead!