Dear readers, there are three Straits Times Index (STI) stocks that are currently oversold. Each of these three stocks has a Relative Strength Index (RSI) of below 30. Without further ado, let us take a look at the three oversold Straits Times Index (STI) stocks now.
The three oversold Straits Times Index (STI) stocks are below. I have further indicated their price-to-book ratios and their dividend yields in circle brackets and square brackets respectively.
JMH stock (0.534) [3.925%]
JSH stock (0.644) [1.708%]
SATS stock (1.81) [7.252%]
Two of the above three stocks: JMH stock and JSH stock were also previously oversold in the week ended 8 May 2020. It is noteworthy that the two stocks are getting more and more oversold. JMH’s price-to-book ratio has been reduced from 0.555 to 0.534 while JSH’s price-to-book ratio has been reduced from 0.674 to 0.644.
The new entrant to this week’s oversold Straits Times Index (STI) stock is SATS stock. I have previously blogged about SATS stock, sharing with readers that I view SATS as one possible Singapore stock to be privatised next . While SATS’ dividend yield is now as shown above 7.252%, I believe this really has partly to do with its current low price. When the earnings is updated, the dividend yield should be normalized to its average historical dividend yield.
As for JMH stock and JSH stock, I am of the view that these two stocks should continue to trend down if the political turbulences in Hong Kong returns.
In summary, oversold Straits Times Index stocks does not mean that these stocks will rebound anytime soon. The narrative of once blue-chip counters in Singapore has changed so much in tandem with the disruptive business landscape. What’s more now with the threats posed to businesses by Covid-19. Investors should have a long-term outlook when investing their monies.
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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