“Freedom day” approaching for Singapore?
Right after National Day on Monday, we will soon be able to dine out again up to 5 pax if you are fully vaccinated. This news came at a rather unexpected time because the average cases per day were still hovering around a hundred. As a matter of fact, last week’s market outlook also stated that we shouldn’t be expecting any good news with regards to the current restrictions. Nevertheless, will this move push the market upwards? Probably yes. At the least, this should start assuring restaurants again that the MTF is committed in reviewing their measures to ensure that there is sufficient evidence made that there will not be catastrophic impacts if certain restrictions are lifted prematurely.
As for market conditions, we are still staying relatively stable even before the news on Friday evening after market close. Part of the support came from the 3 banks which are major constituents of the STI as they just reported better than expected earnings in Q2 of 2021 with dividends reverting to the same or better than 2019 levels.
STI – Updated Daily Chart
Little can be said about the daily movements in the market except that there is still a bit of volatility caused by other major markets.
STI – Updated Monthly Chart
The monthly chart continues to perform similar to the 2016 to 2017 period as shown on the above chart. STI continue to tread cautiously within the tiny consolidation zone.
Author’s Call as of 7th August 2021
- Expect more positive price movements on Tuesday in view of the lifting of restrictions
- The STI continues to trend sideways with a bit of volatility
- More restructuring expected for beaten down counters in STI but dates are still unknown
- Holding for the coming week would be a good choice for most investors who have deployed most of their capital
Author’s Call as of 31tst July 2021
- Not expecting good news from the MTF in the coming week due to higher number of cases and increased need for medical support
- Daily chart shows sideway consolidation or a slight uptrend but nothing conclusive
- Monthly chart seems uninteresting but expect volatility in the weeks to come as usual
- Best advice is for investors to take action when it make sense for your stock counters either to take back capital or deploy some for weakened counters.
