Dear readers, the Singapore Straits Times Index (STI) closed at 2,481.23 on 31 March 2020. As of this time in writing (shortly after the Singapore stocks markets opened this morning), the STI closed around 2,590. So what the above translates is an approximate 4.3% increase for the Singapore stocks markets in Quarter 3 2020.
The STI closed at 3,222.83 on 31 Dec 2019 and this means that we have an approximate 20% correction in Singapore stocks markets compared to 2019 in just the first half of 2020. But we must not forget that the Singapore stocks markets have corrected beyond this 20% level in the first quarter of 2020. On 23 March 2020 which was the worst showing of the Straits Times Index year-to- date (at 2,233.48), the year-to-date correction of the STI (versus 2019) was about 33%.
If you are a regular reader of SG Stocks Investing, you would know that I have a target of 2,000 for the Singapore Stocks markets when the markets undergo a mass correction. With second quarter of the STI at 2,590 and applying the 20% discount once again, we arrive at 2,072 which is very close to the 2,000 target I set for the STI in a correction mode.
I expect the next 20% correction to the current level of the Straits Times Index will occur earliest third quarter of the year in this current market backdrop and when companies report earning performances which may show how the Covid-19 has affected their businesses.
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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