Dear readers, we are approaching the end of the first quarter of Year 2023. The Singapore Stocks Market has showed some signs of mild corrections in line with the broader and larger overseas stocks markets. In today’s post, let us take a deeper dive into the specifics of what has transpired so far for the Singapore stocks markets.
When we talk about performance of the Singapore stocks markets, there must always be a benchmark for comparison. And I believe a reasonable benchmark will be the Singapore’s stock market benchmark indicator, the Straits Times Index (STI) as at the last trading day last year (2022). As at 30 Dec 2022, the STI was 3,251.32.
Right into Year 2023, the STI has assumed an ascent all the way to a high of 3,378.29 on 30 Jan 2023. This is about 3.91% higher than the 2022 close of 3,251.32. However, it was then at the end of Jan 2023 that the STI started to consolidate and went on a descent from 9 Feb 23 to current (i.e. 10 Mar 23, the last STI trading session). As at 10 Mar 23, the STI was 3,177.43 or -2.27% lower than the 2022 close of 3,251.32. The main driver of this decline was none other than the US inflationary factors and measures/possible measures from the US Federal Reserves.
The current performance of the Singapore stocks markets is that if an investor has invested his monies into the Singapore stock markets, excluding dividends, he would have incurred a loss/paper loss of about 2.3%. On the other hand, if the investor has bought into the current fixed deposits and similar equivalent products like T-bills and Singapore Savings Bonds, he would be assured a risk-free capital gain of between 3% to 4% upon maturity.
Based on the STI, the Singapore Stocks Markets is currently Oversold. I would think that there is more room for the STI to decline, till the next support of 3,115; that means another near-time correction of 2% in total for the Singapore stocks markets.
This year should be another roller coaster ride for the STI and overseas stock markets, with pockets of opportunities for the savvy investors. All the Best in your Investing Journey!
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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