Dear readers, in today’s post, let me reveal one exciting insight about the Singapore Straits Times Index (STI) and Singapore stocks.
On Tuesday, US stocks closed significantly lower. Dow Jones: -2.25%, S&P 500: -2.78%, NASDAQ: -4.11%. Based on the aforementioned showing, I shared in the post yesterday that the Singapore Straits Times Index should be able to break below the 2,500 support in yesterday’s trading session. I was right as the Straits Times Index closed 2,499.33 yesterday, down by 0.22%.
But the fact that I was correct on the performance of the STI is not the exciting insight that I am going to reveal here. What is exciting to me is the magnitude of southing of yesterday’s Straits Times Index: 0.22% lower only though US stocks went south by such magnitude on Tuesday and in view that Singapore stocks markets is generally a price taker.
What the above means is that Singapore stocks markets is rather quite decoupled from the US stocks markets. It is not just today that I see Singapore’s Straits Times Index performing not of the magnitude like its US peers. I would think such decoupling is good for the Singapore stocks markets as it means that our Singapore stocks markets can at least have some characteristics of our own rather than being just a price-taker from the US stocks markets. But on the other hand, I opined that there are not many sellers for Singapore stocks as sellers may have sold their stocks ahead of the current bearish stocks markets environment.
What I means too on the flip side is that it may be more challenging to predict the direction of Singapore Straits Times Index (STI) and Singapore stocks.
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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