Dear readers, it has been announced this afternoon that Singapore’s Phase 3 Re-opening will commence from 28 Dec 2020. This timeline is earlier than what I have thought since I was of the view that the Phase 3 Re-opening has to align with the take up rate of TraceTogether usage crossing the intended threshold. Also, authorities who were recently interviewed has also opined that they felt Phase 3 Re-opening would not take place before the end of the year.
In an earlier post, I asked readers whether a Santa Claus rally in Singapore stocks markets will take place this year given that we saw this effect last year. To recap, a Santa Claus rally is defined as a calender effect that involves a rise in stock prices during the last five trading days in December and the first two trading days in the following January. That means to say, the Santa Claus period will dovetail that of Phase 3 Re-opening date.
Will we see a Santa Claus rally in Singapore stocks this year, especially given that Phase 3 Re-opening may make investors bullish? Or will the bullishness from Phase 3 Re-opening already start from today?
Again, I would think that Singapore is a price-taker and the developments on the US, China and macro economic front would be more significant for Singapore stocks markets. Our economy is not fully open with Phase 3 Re-opening. And even when our economy fully opens, businesses are likely to be not the same as before Covid-19.
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