Yangzijiang Stock: a shocking crash

Yangzijiang Stock

Yangzijiang stock closed 20% lower on Friday 8 Aug 2019, down $0.26 from $1.30 to close at $1.04. Intra-day on 8 Aug 2019, Yangzijiang stock went as low as close to 30% lower to $0.93 before closing the trading day slightly higher.

The crash of Yangzijiang stock may be related as reported, to a China’s probe into individual linked to firm.

Yangzijiang stock crash may be rather shocking to investors since Yangzijiang stock is part of the Straits Times Index (“STI”) component stocks which comprise of Singapore’s largest firms. Furthermore, Yangzijiang stock  is a notable name in Singapore stocks especially with many analyst reports, at times regular on Yangzijiang stock.

But being on STI constituent stocks does not really mean a stock is “safe” or “good”. Eventually, a stock price performance arises from the management of the listed company. Just look at Noble Group stock- which was a former STI constituent stock -now.

Also, while one can do much so-called value-investing, fundamental analysis, there are always unknown “unknowns” unknown to the investor for every stock.

Hence, as what I advocate in my strategy here, for Singapore stock, it is wiser to form a bulk of your portfolio in STI ETF, thereafter invest in potential multi-bagging international stocks for the remainder of your portfolio. Rather than leaving the bulk of your investment in one stock against the backdrop of a very volatile and disruptive current macro-environment for many businesses.

 

 

 

 

 

 

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