Dear readers, we are coming to the close of year 2020. The Straits Times Index (STI) closed at 2,827.32 yesterday. The Business Times yesterday carried an article on analysts’ take for the landing point of STI in year 2021. Below is the summary of these analysts’ prediction.
CGS-CIMB: 3,068
RHB Securites: 3,144
UOB Kay Hian: 3,158 or 3,180
DBS Equity Research: 3,180
Phillip Securities: 3,200
Phrases used by the analysts to explain their thinking of a northing of the Straits Times Index include “green shoots in economic activities”, “vaccine-led recovery”, “traditional sector rotation”. “mid-recovery cycle performers”, “economic recovery unfolds”, “pandemic winners”
If we use the highest target for the STI at 3,200; this target for 2021 is about 13.18% higher than the current STI stock level. The STI has declined about 11.7% from 2019, this means to say based on the analysts’ target, Singapore stocks should reach about the similar level in 2021 as 2019.
My own target for the Straits Times Index is 2,000 or below in 2021 due to a market correction which I think will happen for the stock markets worldwide next year. This will correspond to a 30% or more correction from the current STI level.
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