Market consolidation continues as we prepare for reopening

Choosing to face COVID-19 as an endemic has done both its good and bad for the nation-state. On the better side of things, if it works, it will be a successful model for the world and hence allow Singapore to be the safest hub for the region. Coupled with the well-funded aviation industry, we should expect to see increased traffic thru Singapore when more people travel abroad. However, Hong Kong did express disagreement as they are still in the midst of eradicating the virus completely. As such, they might be scrapping the travel bubble with Singapore. In a way, I see this as a win as it is impossible to keep transmission levels at 0 because none of the vaccines can prevent the virus completely. Therefore, if their policy restricts international travel for leisure, education, and medical tourism then Singapore is bound to prevail if we manage to keep the virus at bay while resuming a new version of “normal life”. Overall, my sentiments remain positive for Singapore’s market and we can expect a further recovery in the weeks to come.

STI – Updated Daily Chart

On the daily chart, STI has been supported by the 3110 thus far and will continue to head northwards as the government has announced the dates to resume more normal activities such as dining in with larger group sizes in the coming weeks. This should be able to stimulate further recovery and growth. Not to mention that by August 2021, we should have at least 50% of the population who have been fully vaccinated and around 75% who have gotten one shot.

STI – Updated Monthly Chart

The STI’s monthly chart is currently still supported by the uptrend support line and that is likely to hold in the coming weeks.

Author’s Call as of 10th July 2021

• The nation will likely benefit from declaring an endemic for COVID albeit some disagreements
• Daily chart support level at around 3110 is still holding and more uptrend to be expected in the coming weeks
• Monthly chart also shows signs of slowing in terms of its downtrend
• Overall sentiments remain positive for STI but geopolitical instability between China and the US continues to maintain higher volatility

Author’s Call as of 3rd July 2021

• STI on a short term downtrend since March 2021 and it should only temporal
• We should see a further recovery in the second half of 2021
• Hard hit sectors will benefit from the lifting of some restrictions after July 12
• STI’s progress has been modest but it also gives investors more time to adjust their portfolios so we should take advantage of that