Dear readers, the Straits Times Index (STI) declined by 1.16% yesterday (19 Jun 20) to close at 2,634.83. This decline came as Singapore goes into phase Two of the Safe Reopening yesterday. Any gains investors would associate for the Singapore stocks markets with Phase Two of the Safe Reopening have already been factored into the Singapore stocks market when it gained on the news that Singapore will enter into Phase Two of the Safe Reopening.
Among the biggest losers in the Straits Times Index (STI) were:
1. CapitaCommercial Trust (-4.42%)
2. DairyFarm stock (-4.16%)
3. CapitaMall Trust (-3.79%)
I am not really surprised at the steep decline in DairyFarm stock as I have mentioned that DairyFarm stock is already overbought.
And for the biggest winners in the STI, we have:
1. Genting Singapore stock (+1.97%)
2. SGX stock (+1.59%)
3. UOL stock (+1.43%)
Again, I am not surprised that SGX stock managed to gain despite the broader sell down of the Singapore stocks markets. As shared in my post on “Oversold Straits Times Index (STI) stocks on SGX now” then, I have noted that SGX stock is the only stock on the STI that is oversold.
Notwithstanding the above analysis, investors should note that these daily movement in the Straits Times Index constituent stock prices are nothing compared to the larger narrative of the global and Singapore stocks markets. A narrative that is marked by absence of positive catalysts to drive the stocks markets north. A narrative that is marked by reports of worsening economical outlook of Singapore. And a narrative that is marketed by the fact that Covid-19 has not waned off despite Phase 2 of Singapore Safe Opening.
The general trend for stocks markets in my view is bearish. I maintain my views that the STI should come down to 2,500 in the coming weeks. And when the stocks markets undergo a massive correction (this correction will often come abruptly), the STI will head down to the 2,000 level.
Whether I am correct in my above outlook is not important. It is also not important to know how quickly the stocks markets correction (which some say have been more than a decade and more in the making) will come.
The most important thing is when the stocks markets correct, YOU would will have prepared a warchest of liquidity to pick up valuable stocks at greatly discounted prices when most investors have fled.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! 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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