Dear readers, it has been a while since we last took a look at the overall state of the Singapore stocks markets, so in this post let us have a quick review of the local markets.
As a start, the Straits Times Index (STI) closed at 2,920.43 yesterday. Ever since the STI reached slightly above 3,000 in middle January 2021, the 3,000 level seems a pretty strong resistance such that the STI has been consolidating since then.
A main reason for the consolidation is that the Singapore stocks markets are generally a price taker (from the global stock markets). With the global stock markets being neither bullish or bearish, the Singapore stocks markets hence has taken its cues accordingly.
The STI is neither overbought nor oversold currently with the RSI of the STI standing at the 40% range. In terms of fundamentals, the key metrics of the STI (based on that of the SPDR STI ETF) are as follows:
a) Distribution yield: 3.39%
b) Price-to-Earnings ratio: 14.91
c) Price-to-Book ratio: 1.03
I am of the view that global stock markets will have some corrections in the first quarter of this year as part of the natural cycle of stock movement, so investors may want to take a note of this.
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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