Dear readers, it was reported that a recession for Singapore could not be ruled out with the development of the Covid-19 episode in Singapore. The last time Singapore experienced a recession was in the year 2008, 2009 due to the global financial crisis. During the last recession, the Straits Times Index reached as low as 1,595 on February 2009.
We are now at 3,220.03 for the Straits Times Index which is almost twice the level in the last recession. Hence if Singapore were to undergo a recession, a likely level could be what we saw in the recession of 2009 which is 1,595. But I would first not go as far as to suggest that level yet. This is because the last recession involved many countries experiencing the fallout of the global financial crisis. This time round, it is still not clear whether if Singapore were to go into a recession again, how will the economies of the other countries perform comparatively too then?
I would think if the short-term bearishness of the Singapore stocks markets are to persist, a Straits Times level of 2,900 and below is imminent.