Strong rebound from 2020 performance (> TTSH cluster?)

So far STI’s banks are leading the way with superior performance relative to last year’s reports. Although the increase in net profits was significant, many investors are starting to worry that all of these positive performances are already priced in. Hence, we have seen in the past 3 weeks that STI continues to hovered around 3180 and kept below 3250 even on the best days. As the pandemic continues to threaten businesses domestically and internationally, markets are also starting to worry if there will be a larger correction. In Singapore, the TTSH cluster is starting to test the efficacy of our vaccination efforts. So far, we have reverted back to phase 2 and we are seeing some unlinked community cases. Though that would affect market sentiments, I do not feel that moving forward there will be no new cases even in years to come thus, it is more about getting used to this disease rather than hiding from it.

STI – Updated Daily Chart

On the daily chart, STI is back to the lower limits of the rising wedge with Friday’s solid green candle. Although that is a good sign of a rebound from Wednesday’s low, we still cannot be sure that a further climb will happen in the coming week ahead.

STI – Updated Weekly Chart

Our path to recovery has been rather normal compared to other markets but because we are not following the trends of the larger markets, we cannot be sure that we are at our “new peak” or are we still on track to a new all-time high due to all the liquidity pumped into the world.

Author’s Call as of 8th May2021

• STI’s movements have been great in the past week if you have taken profit prior to the sudden price corrections
• As the TTSH cluster continue to manifest, STI’s performance might be tugged by new Government restrictions to curb the spread
• Otherwise many companies on the STI are still underpriced since the impact of the pandemic is still present
• Some turbulence to be expected in the near term especially for hard-hit sectors

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