Dear readers, the Straits Times Index (STI) is currently at 2,500. While many have been speculating or thinking in which way the Singapore stocks markets will head next, as food for thought, over the last two years, the Straits Times Index has gone down by 30.6%!
In April 2018 the STI reached 3600. In May 2020, the STI is now at 2500. So in just 25 months, the Straits Times Index have headed south by 30.6% or an average of 1.22% per month over the previous 25-month period. The southing of the Straits Times Index brings with it the southward movement of its constituent stocks as well. For example, DBS stock.
In April 2018, DBS reached a high of $30 per share and as of 15 May 2020, DBS stock price closed at $19. Hence DBS stock price has declined over 36.6%.
Or consider Singtel stock price which has declined from $3.40 to $2.66 over the same period which translates into a 21.8% decline.
Are we already two years into stocks markets corrections?
I don’t think we are right at the bottom of the stocks markets or any of the bottoms. The risks of a possible global recession and a possible recession for Singapore this year are yet to be felt yet. I am of the view the Straits Times Index (STI) will reach 2,000 for a near-term support.