Dear readers, there is currently one oversold Straits Times Index (STI) stock as compared to the last screening of oversold Straits Times Index (STI) stocks in end May which filtered out eight oversold Straits Times Index (STI) stocks. The reduced number of oversold Straits Times Index (STI) stocks is inevitably so since the STI has rallied further in the first week of Jun 2020. The Straits Times Index (STI) is now 2,751.50. The STI index is now overbought and it is a similar case for the STI ETF (ES3.SI). The overbought STI brought with it a number of overbought Straits Times Index (STI) stocks. But before we get to these overbought STI stocks as well, let us look at the one oversold Straits Times Index (STI) stock as of now.
This oversold Straits Times Index (STI) stock is none the less the Singapore Stock Exchange SGX stock, the stock of the Singapore bourse operator. The current performance of the SGX stock was triggered by the 28 May 2020 trading session where the stock fell by 11.6%, followed by another decline by 6.9% to a close of $8.15. SGX stock subsequently inched up to close at $8.45 yesterday.
The bearishness of the SGX stock after it was reported that MSCI Inc said it would move licensing for derivatives products on a host of gauges to Hong Kong from Singapore next year. Despite SGX being oversold now, the price is still nowhere close to the $7.30 support from end 2018 to mid-2019.
I have glanced at headline news that said given these uncertain times, more people are turning to savings. If this trend were to persist, the number of people investing would likely reduce and this will not be good to the business of SGX.
Going back to overbought Straits Times Index (STI) stocks, we have 16 overbought STI stocks, which is more than half of the STI constituent stocks. These overbought STI stocks are as follows.
Ascendas Reit
CapitaCommercial Trust
Capitaland stock
CapitaMall Trust
City Development stock
DBS stock
Genting Singapore stock
Jardine C&C stock
Mapletree Commercial Trust
Mapletree Industrial Trust
SATS stock
UOB stock
UOL stock
Venture stock
Wilmar International stock
YangZiJiang stock
With the Straits Times Index now overbought, I think a correction to the Singapore stocks markets will be soon.
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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