Capitaland’s deal is well-timed
I guess many of us can agree that as far as the STI is concerned, Capitaland’s delist plans were the highlights for the past week. Capitaland’s bold move on liquidating CapitaLand’s shares at a premium plus scrip scheme was a huge surprise so much so that many investors were dumfounded after Capitaland resume trading on Tuesday morning. This delist offer signals the continued support for investors from the main counters listed on the STI and I am optimistic that other counters are countering to offer similar deals as well. On the other hand, Singapore’s management of the pandemic has been more than satisfactory and recent spikes for non-finance and aviation stocks renewed confidence for investors.
STI – Updated Daily Chart
On the daily chart, the STI continues to climb modestly and closed higher on Friday. Noticeably, most of its constituents are bullish, including counters which were kept below key resistance points for the past weeks.
STI – Updated Weekly Chart
í intentionally used the weekly chart to show that STI is approaching the upper limits of the Bollinger bands and thus we should again expect some level of resistance yet again. Investors should consider shaving their portfolios if possible to take some profit, especially from bank stocks. Otherwise, we should wait for next week’s market movements for further signals and confirmations.
Author’s Call as of 27th Mar 2021
- Global markets are bullish at closing on Friday with GSPC closing near 3980
- Some STI constituents are turning bullish as well after consolidating for weeks
- Investors should take profit and shave their portfolios and perhaps free up some cash
- STI remains bullish but it will be foolish to expect this to continue indefinitely
Author’s Call as of 20th Mar 2021
- STI’s resilience is remarkable even as the rest of the world continue to worry about rising yields (threatening risk assets)
- Yield hunters might be taking profit as yields in lower-risk securities continue to rise
- Equities in the Singapore markets continue to stay attractive as valuations are still reasonable at the moment
- Taking profit to prepare for reentry in other weakened sectors might be a good move for investors in the SG market.
