Dear readers, let us take a look at six Straits Times Index (STI) stocks which are oversold now. Each of these STI stock has a RSI of below 30.
These oversold STI stocks are
Ascendas Reit
DairyFarm stock
JMH USD stock
JSH USD stock
Keppel Corporation stock
Sembcorp Industries stock
We could classify these oversold STI stocks as Conglomerate (Keppel and Sembcorp), Hong Kong centric stocks (DairyFarm, JMH and JSH) and Reit (Ascendas Reit).
Compared to the screening last week where there were only just three oversold STI stocks (Ascendas Reit, Keppel and Singtel), for this week screening, more oversold STI stocks were revealed. On the back of the current lacklustre stock market backdrop, I would think going forward, more STI stocks would be oversold.
It is regrettable to see the conglomerate stock prices of Keppel and Sembcorp being reduced to the current order of prices. More so for Sembcorp Marine under Sembcorp Industries. A decade or so, Sembcorp Marine stock traded close to $4 per share; as of yesterday, its price was $0.16 per share.
Many of the STI stocks were former blue-chip stock whose prices have done very well during the industrialisation phase of Singapore. Beyond the industrialisation phase, I noted many of these stocks venture overseas to capture a slice of the global market as Singapore market is limited. It is during this overseas expansion that I noted many of the STI stocks fall prey to the competitive and now increasingly more volatile nature of the global economy.
By and large, the world is still in the thick of Covid-19 and worsening economical outlook. I feel the realities of the global state of affairs has not caught up with the global stocks markets e.g. the US stocks markets but I could see that the correction effects coming.
For Singapore stocks markets, there is definitely room for more corrections. If we take a look at DBS stock price of $20 per share, I think it is a tad high against the current stock market backdrop and think the price would be corrected to match the reality of the macro economy. When that happens, given DBS stock is a large constituent of the STI, we are expected to see the STI and the STI ETF (ES3.SI) head further south.
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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