Dear readers, there are six oversold Singapore Straits Times Index (STI) stocks, Reits and Trusts trading on the Singapore Stocks Exchange now. To be more specific, two oversold Straits Times Index (STI) stocks, three oversold Reits and one Trust, each having a RSI of below 30. Let us take a look at the names of these oversold stocks, Reits and Trust now:
City Development stock
Dairy Farm USD stock
Asian Pay TV Trust
First Reit
Keppel Reit
SPH Reit
Let us me comment very quickly on the aforementioned stocks, trust and Reits.
First, City Development stock. Undeniably, this stock may have declined due to news that its non-independent and non-executive Director, Kwek Leng Peck has resigned from these positions. The 7.2% drop on 21 Oct 2020 for this stock was quite steep.
Second, Dairy Farm USD stock. This Hong Kong-centric stock is now approaching its March 2020 intra-year low but do note that this low in March 2020 was also a low in recent years for this stock. Similar Hong Kong centric stock in the likes of Jardine C&C stock, JMH stock and JSH stock have in recent trading sessions seem to have inched up. But it remains too soon to conclude that these Hong Kong based stocks have seen the worst of trading sessions. Much depends on the macro environment.
I will now go to the Reits and Trusts. We will start off with Asian Pay TV Trust. I still recall years ago when some analysts were lauding this trust and pointing to its seeming high growth business and citing its high dividend yields. I looked at the dividend yield of the trust then and it seem to be not that sustainable. I was right, just look at the stock price of Asian Pay TV Trust now.
Then we have First Reit, which has been trading at low levels for a sustained time already, reason which I believe to be of investors looking at the business fundamentals of the Reit.
Last but not least, Keppel Reit and SPH Reit which are Reits belonging to well-known bigger names. Both the above Reits have headed south to support levels now. Once the support levels are broken, more downside is on the card for these two Reits.
My take on these oversold stocks,Reits and Trust is to just note them as oversold. On the back of a bearish macro backdrop, there is more room for these entities to further head south. There are also opportunities for other stocks to head low and to be attractive too.
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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