Dear readers, we are coming to the close of Year 2020. Year 2020 will always be remembered as the year where Covid-19 has impacted everyone and many have met with economic uncertainties.
Against this macro backdrop, it is understandable that stocks markets will not generally perform well though markets still have performed better than expected in these trying times.
Let me share with you how the overseas stock markets, as measured by their respective stock indices have performed year-to-date, starting from one of the best performing regional indices:
China SZ Composite: 29.1%
South Korea KOSPI: 26%
Taiwan TAIEX: 18.9%
Thus, if you have put your monies into the three aforementioned stock markets, congratulations to you!
Next we head closer to home, these are the year-to-date performance of the indices of our neighbouring countries:
Malaysia KLCI: 6%
Indonesia JCI: -5.7%
Hong Kong HSI: -6%
Thailand SET: -6.2%
Philippines PCOMP: -7.3%
This poses the question: how has Singapore stocks performed compared to its global and regional peers?
Without further ado, Singapore Straits Times Index year-to-date performance is -12.4%. This makes Singapore stocks markets one of the worst-performing stock markets in the world for the year-to-date in year 2020.
Despite being one of the worst-performers, I am of the view that there is scope for the Straits Times Index, Singapore’s stock benchmark to fall further. Remember, DBS stock makes up a key constituent of the Straits Times Index and DBS stock price is already at a current high of $25.06. Hence, the STI’s -12.4% year-to-date performance is pegged to this high DBS stock price. If DBS stock price falls back to gravity (and same with other STI constituents), STI is going to head south further dragging its year-to-date performance further south.
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!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!