Time To Get Back Into STI?

Yeah, I think so.

If you were briused by recent plunge in STI due to the sub-prime loan in USA**, then you should be getting back in soon before you missed the ride up to the next all record breaking high in STI.

STI Summary by Yahoo Singapore Finance

Reason being the upside is greater than the downside. The STI might go all the way to 4,000 within this year. And I don't think it will go below 3,000 level again unless something big happen in China or Japan. The STI is now just below the half-way point. In fact, it closed earlier -45, at 3,343.

I reckon both blue chip and small caps will go up for the next 2 months.

Will the STI go up 600 points in the next 2 or 3 months?

**[Update Aug 29, 2007] Sub-prime loans crisis not as bad as thought?

Straits Times Aug 29, 2007

Is STI consolidating around 3,500?

I hope so! I am still holding on to my Singtel shares, Mediaring, BBR and etc. in my CPF. I don't want it to do a 5,00 points correction within the next 12 months.

STI Summary by Yahoo Singapore Finance

STI has been moving up too quickly over the last 12 months - about 1,000 points!

Consolidating around 3,500 to 3,700 level will be good. It will allow more small cap counters to catch up a bit. I will exit when STI get closer to 3,700 if not earlier.

Now, we are truly in uncharted territory. STI 3,700 is the next level to achieve. However, no one can say for sure it STI will not pull back to 2,850 level. So don't be greedy and be very CAREFUL.

STI breached 3500

STI closed at 3,501.10 on 14 May 2007. I didn't expect it to break 3500 level so soon. I mentioned in my previous post about 2 months ago on March 5, 2007 that STI would move beyond 3,500 this year - 2007.

STI Summary by Yahoo Singapore Finance

Now, as I write this post, STI has dropped 41 points from yesterday high. So fast profit taking already?

Well, it's always good to take profit.

How Barclay ABN Amro Takeover Deal Affects Asia

The merging banks will cut jobs in Europe. I think we will see more workers go on strikes in Europe despite it is a good excuse to merge and fire workers. More jobs will go to Asia, especially outsource to India. Singapore may get a slice of the influx jobs from Europe.

I guess this is what's happening... merge the banks, fire some people, transfer key people to work in Asia.

So why is this happening? Could it be the strong euro? Wages in Europe are definitely high when compared with India. Seems like not only Singapore faces low wage competition from India and China.

Still, I think we have a few more good years ahead before the next crisis comes.

Indonesia-Singapore Extradition & Defence Pacts

Now that the Indonesia-Singapore extradition get out of the way, many people are expecting the sand and granite supply shortage will be solved soon. Construction related counters will continue with their rising trend.



Cheaper Sand and Granite for Construction Industry

Here's what I am HOPING... BBR will go up to $0.40 within next 12 months. Liang Huat will shoot to $0.30 within 6 months. I have vested interest in both these counters. I have been holding on to these construction related shares since 1999. If you have been in the Singapore stock market for that long also, you'll know that I still lose money even if I got what I hoped for!

If you do not have any construction related shares, you may like to start monitoring their movement. The construction industry has started to boom and will continue for at least another 3 to 5 years. With long term plan to use sustainable construction material, structural steel supplier and distributors will have good time ahead and earning for these companies will increase - so will the share price.

Possible Negative Effects of Indonesia-Singapore Extradiction Pact

Now that rich crooks from Indonesia cannot hide in Singapore, they will flee along with their monies. I heard rumors that many Singapore-based banks have millions of dollar of deposits from Indonesia citizens. Some of these monies will disappear, and effects some banks in Singapore. So you still have little time left to exit financial related stock. You may also want to be ready to short the SiMSCI.