Recovery on track but endemic spread continues to raise uncertainties

As the daily cases exceed 3000 per day, Singapore continues to experience an ever-increasing strain on our healthcare system. That said, from the citizen’s point of view (non-healthcare related), we are still remaining largely optimistic since there is already 98% of the population who will unlikely die from the illness even if they are infected. Moving forward, we will still see a large number of new daily cases and potentially higher numbers of deaths as well. As for the Singapore market, I think there is temporary stability for now as the US debt ceiling has been suspended and China’s Evergrande issue has been somewhat muted for the time being. Additionally, more countries are added to the Vaccinated Travel Lanes (VTLs) in the coming weeks, hence boosting both tourism and travel-related industries.

STI – Updated Daily Chart

Singapore’s gap ups on the daily chart continue to keep optimism up in the market however there has not been much buying when the market is open as the candlesticks are mostly green but short for the last 3 days of the week.

STI – Updated Monthly Chart

The STI is finally back in a slight uptrend after 2 months of negative sentiments and decline. If all goes as planned by the government, that is, no new triggers which can wreck the existing plans and measures to manage the virus. Although I might add that the Ministry of Health has also expressed that cases are starting to decline, therefore, we might be observing fewer daily cases that will also boost the market.

Author’s Call as of 9th October 2021

• Additional measures are introduced to encourage vaccination for the final leg of the race to vaccinate all of the population
• The daily chart shows that there has been premarket purchases by non-retail buyers but buying pressure is still modest at the moment
• The monthly chart shows a decent rebound in October following 2 months of correction and slight decline
• Suggestion right now is to look at accumulating stocks which will benefit from the reopening of borers with countries through the VTL.

Author’s Call as of 2nd October 2021

• The infection numbers are still on the rise but the MTF remains hopeful and are trying to keep our healthcare sector functioning adequately
• The daily chart looks seemingly resilient despite global instability due to US last minute approval of the bill extension
• STI’s weekly chart shows that the market is still trending lower but 50 weeks MA continue to ascend and might provide adequate or temporal support
• Overall STI continues to stay resilient and modest, winners goes to those who have been selling off in the past weeks as they will be able to buy back at a significant discount in the past week
• Moving forward, we need to careful when we accumulate as the market might get more volatile as the major economies address its debt issues