Dear readers, on 29 Apr 2020, I blogged about how Singapore Straits Times Index (STI) stocks should be heading down. or consolidating in the near term. As proven correct once again, the Straits Times Index went lower yesterday by 2.31%, bringing with it lower are the Straits Times Index constituent stocks.
The oft-cited defensive Reits and Trusts were not spared either. For example, Prime US Reit sank 5.41%, Suntec Reit retreated by 5% with a couple of these Reits and Trusts lowered in the order of 4% respectively.
All the above market action is not surprising to me. With a bearish view on the Singapore stocks markets, my short-term target for the markets is 2,000. I believe short-term gains on the equity front are limited while downside risks are significant.
With the easing of Covid-19 restrictions in more overseas cities, people may be lulled into thinking the Covid-19 situation may be easing. From what is reported, Covid-19 may not be disappearing that soon. And even if it does, the impacts of Covid-19 on the global economy have yet to be fully felt. We should be able to note the Covid-19 impacts on businesses at the upcoming earnings report.
In a nutshell, I expect further selling off or at most a consolidation of 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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