Dear readers, it is time for us to take a look at the Oversold Singapore Straits Times Index (STI) stocks once again. It has been an eventful week for the stocks markets marked by the usual volatilities in the markets and the announcement of US President contracting Covid-19.
As a recap, there are four Singapore Straits Times Index (STI) stocks that have been oversold for most of September 2020. They are DBS stock, SATS stock, Sembcorp Industries stock and SIA stock.
For the trading week ended 2 Oct 2020, the Straits Times Index (STI) managed to inch up from 2,427.28 (25 Sep 20) to 2,496.11 (2 Oct 20), a gain of 2.84%. This sets the backdrop for many of the Straits Times Index stocks as they eked out small gains or continued to consolidate around pretty much the same levels.
A scan this week for oversold Singapore Straits Times Index (STI) stocks which are oversold, i.e. having a RSI of below 30 yielded this: there are currently no STI stocks which are oversold.
But that does not necessarily mean that Singapore stocks and the Straits Times Index stocks are poised to head up next. There is just so much volatilities these days in the stocks markets. And in my view, the stocks markets are slowly correcting down in stages.
For investors still wishing to stay invested, I believe that the most sensible way to invest in Singapore stocks is through investing in the Strait Times Index itself through the STI ETF (ES3.SI). That way, your investing performance is pegged to the STI itself rather than any individual STI company. The STI is also made of the strongest stocks given the quarterly review of which largest Singapore listed company counters should stay or leave the index. And on top of all these, an investor would still receive dividends. But do take note that when the stocks markets correct, the ETF will correct in tandem. Just that you have the assurance that you are investing in an index which is tagged to the overall state of the Singapore stocks and which will head up when the stocks markets recover next.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! 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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