Dear readers, we are into the last trading day of the year and the Singapore stocks market’s Straits Times Index (STI) closed at 3,787.60 for today. This is a good performance considering that on the last trading day (29 Dec 23) last year, the STI was at 3,240.27.
Indeed, the Singapore stocks markets had a stellar 2024 with 16.89% capital gain for the STI! The STI trades at 12.7 times earning on this last day of 2024.
With such a good performance of the STI and from my reading, I can sense that some segments of the local community are feeling optimistic on the Singapore stocks markets next year! Their euphoria is also in part fueled by the thinking that the Singapore stocks markets could fare even better when the committee that oversees the rejuvenating of the local bourse starts implementing the measures!
This is why I read today that the base target for the STI in 2025 is 4,000 and a bull-case target is 4,410.
My personal view is that when the Singapore stocks markets is doing well, such a higher target is easily acceptable by many. However, I will always be cautious to have my own thinking about investing for next year.
The STI performance weighs heavily on the three local big banks: DBS, OCBC and UOB by their constituent composition. While analysts are optimistic that the 3 banking counters still have the potential to go even higher, I always stand by the fact that Singapore’s stock market is a price taker. Our local bourse is easily shaped by the performance of the much larger stock markets and by the state of the global economy.
Thus I will always consider the much macro environment when it comes to investing and it is not as if that the current macro economy is free of geopolitical and economic issues.
Nevertheless, on this last day of Year 2024, it will be encouraging to go into Year 2025 with a bullish outlook of the Singapore stocks markets and feel buoyed by the good news of how high the STI can go into 2025. I should hence stop being a wet blanket.
SG Stocks Investing wishes you and your family and loved ones a Happy New Year 2025, filled with good health, joy and prosperity!