STI is still waiting to be fully “vaccinated”

As STI continues to consolidate, we strongly believe that the index will sit on the fence until there is further confirmation of stability in the economy. Not to mention that the number of new infections in some parts of the world like Japan and India is skyrocketing and thus, threatening supply chains and the resumption of global travel yet again. At the moment, the Singapore city-state is spared as there are measures on hand to manage any signs of community infections however, an extension of this pandemic is still highly threatening to our economy as well. With the market running on fuel based on optimism at the moment, investors should start weighing their options and consider taking on a lower risk approach for the time being.

STI – Updated Daily Chart

We notice that STI is range-bound at the moment between a small rectangular channel (not marked out on the charts above) which one can only hope will last until the rest of the world sort out their domestic issues. In order to push STI upwards, we will need to see further positive news boosting our finance sector which has seems to stagnate as well. On the other hand, funds from institutions are also starting to route out of the country in search of more aggressive capital gains.

STI – Updated Weekly Chart

On the weekly chart, we can be certain that STI is at the very least, back on track as the index continues to stay above the lower limits defined before the pandemic struck. Since we are in the middle of that consolidation zone demarcated by the light blue rectangular zone, I would again advise fellow investors to reconsider their positions and reallocate to prepare for potential dips.

Author’s Call as of 24th April 2021

• STI stayed around the same level last week as Global news re-centers on climbing numbers of new infections
• STI optimism on the reopening of borders and resumption of travel dampened
• STI finance sector remains resilient but might have priced in gains without the full impacts of the pandemic on loan repayments
• Advise investors to reconsider their strategy before May comes to tap on dividend payouts and potential dips

Author’s Call as of 17th April 2021

• The STI remains cautious and is staying around 3200 resistance level
• Value stocks in the STI continue to climb as the economy stabilizes and expects its further recovery
• The US indices’ all-time highs seem to be unsustainable despite a stellar performance from banks.
• Portfolio stagnation partly because dividends are coming soon in May next month