Dear readers, yesterday the Straits Times Index (STI) declined by 2.64% to reach 2,613.88. For regular readers of SG Stocks Investing, you will know that I am not at all surprised at all for the performance of the STI. I have a near-term target of 2,000 for the Singapore Stocks benchmark Straits Times Index but first the STI is likely to consolidate a while at the 2,500 level before another 20% decline to the 2,000 level mark.
This 20% decline may be effected in a swift manner or it could be gradual. But, make no mistakes here, against the current backdrop of Covid-19 and the often-neglected recognition that before Covid-19, the macro environment is already in a bad shape; the 2,000 STI level is, in my opinion rather modest by comparison. Singapore’s economy is starting to only feel the effects of the economy affected by Covid-19 and many economists have painted a pessimistic picture of our economy. What level do you think the STI level deserve?
The worst outcome the Singapore stocks markets in an all-out stocks markets correction is about 1,200, you can revisit “STRAITS TIMES INDEX (STI) STOCKS: THREE POSSIBLE STOCK MARKETS CORRECTION LEVELS REVEALED! ”for more details.
When the Singapore STI reached the lowest for 2020-to-date on 23 March 2020, I think some investors went on to do bargain hunting. I don’t know why since the Great Singapore and International stocks sale has not begun?
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