Dear readers, there are currently two oversold Straits Times Index (STI) stocks trading on the Singapore stocks markets. Is it time to invest in them now? Before we answer these questions, let us take a look at the two oversold Straits Times Index (STI) stocks.
These two oversold Straits Times Index (STI) stocks are:
Keppel Corporation stock
Singtel stock
Keppel Corporation stock closed on 31 Dec 2019 at $6.77. The stock closed at $4.63 on 21 Aug 20 so this translates into about 31.6% year-to-date decline for Keppel Corporation stock. At $4.63 per share, Keppel Corporation stock price now is even lower than the 2016 levels but still higher than the lows of some $3.70+ in 2009. Keppel stock has been trending down ever since Temasek Holdings walked away with the offer to acquire Keppel Corporation.
Next, Singtel stock. At $2.28 per share, Singtel stock is now trading near the 2008 levels. Singtel stock closed at $3.37 on 31 Dec 2019 and hence has retreated by about 33% year-to-date.
Keppel Corporation and Singtel stock are those Straits Times Index stocks which I think have seen their heydays when the Singapore’s economy was developing quickly in the heydays of the 80s and 90s. I would think that it is an inevitable fact that many of the Straits Times Index stocks and former Straits Times Index stocks have now become laggards stocks given the competitive stock market environments. To start with Singapore itself is a small market, once the market is saturated and companies look overseas, I would think they have to navigate the challenges of the overseas markets well. I have seen how many home-grown companies have excelled in their field in Singapore, only to experience challenges overseas. It is really on this note that I have not had invested in Singtel stock after their aggressive expansion to overseas markets.
My advice for investors is that there are better stocks plays on the Singapore and international stage that need not you having to figure out whether there is possibility for Singtel and Keppel Corporation to rebound in their stock prices next.
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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