1. The Straits Times Index clocked the strongest gain for the year last week. Positive sentiment was buoyant by the rebound in oil prices and clear indication of various countries to spur the world economy with various economic tools. This comforted market participants whom had been plagued with fear for an extended period of time. Strong short coverings were seen in the market while bargain hunters rushed into the market; Pushing STI to break its key resistance at 2680 level last Tuesday. The breakout was in a gap up form and this greatly convinced many that STI have reversed its downtrend mo

  2. The Straits Times Index attempted to trade higher last week but it started to face profit taking pressure. It had a strong start during the early week by reaching as high as 2684 level on Tuesday. However, fresh worries on the whole economic situation starts to form again. Oil price retraced and caused another round of selling pressure in the market. Oil related companies were hit and hence, causing STI to return its gains it had accumulated from the previous weeks. It managed to hold above 2610 support level last Friday as hopes of stabilisation of current situation is being heightened.

  3. The Straits Times Index seems to be in buoyant mood during the 2nd week of Chinese New Year. The week started with a strong bullish action as market participants starts to hunt for bargains. This bullish mood helped STI to break out from its resistance at 2610 level and managed to test its recent high at 2644 level. Some resistance was seen at this level but it did not stop STI from attempting to trade higher. The bullish mood was sustained by good corporate earnings report as market participant scrambled to adjust the valuation of the market. 2610 breakout held well during the w

  4. Chinese New Year mood was dampened by the bearish sentiment when market reopened last Wednesday. US and Japan markets suffered a sharp fall as market participants digested the impact of negative interest rate implemented by Bank of Japan. The main reason of bearish was that the expectation of worsening of world economic situation had forced Japan to take up this extreme policy which has yet to be proven as the best way to spur economic growth. Furthermore, negative interest rate will impact on the competitiveness of the banking sector. This caused drastic fall in the banking sector stocks.

  5. Here is the result of my study of DBS's historical financial ratio during the market bottom of 2003 & 2009.
     
    I have made a scale to compare the current P/E, Div Yld & P/B ratios with the historical ratios' range. The range consist of the Min, Max and Averages.
     
    Here is the evaluation:
     
    P/E study:
    DBS is currently trading slightly lower than average Historical P/E.
     
    Div Yield study:
    DBS is yielding slightly lesser than the Histo
  6. Here is the result of my study of OCBC's historical financial ratio during the market bottom of 2003 & 2009.
     
    I have made a scale to compare the current P/E, Div Yld & P/B ratios with the historical ratios' range. The range consist of the Min, Max and Averages.
  7. Here is the result of my study of UOB's historical financial ratio during the market bottom of 2003 & 2009.
     
    I have made a scale to compare the current P/E, Div Yld & P/B ratios with the historical ratios' range. The range consist of the Min, Max and Averages.
  8. Recently, I met up with a client and she said: "Jay! If Uob goes to $8, please inform me!!! I sure will buy!!!" I replied in disbelieve: "I do not think it can reach $8. In fact, based on the financial ratios, it is now trading at a very undervalued point!!!"

    When I went back home, I pondered. I have been advocating people to prove and reason why they derive a certain conclusion. This time, I told this client that UOB is trading at a "very undervalued point". Do I have prove for it?

    NO! I didn't. This

  9. Bank of Japan rocked the market by announcing a surprise move last Friday. BOJ had decided to implement negative interest rates so as to spur its economy to maintain its inflation rate in light of the current market condition. This announcement heightened that the Straits Times Index and helped it to recover its lost grounds during the week. For the first half of the week, rebound attempts were seen to be unsustainable as market participants were craving for a strong reason to buy in the week market. Hence, STI was seen hitting as low as 2539 level. It is only on Thursday then we are able t

  10. It had been an exciting week for Straits Times Index last week as further volatility hits the market. STI started the week with a strong gap down as it reacted to worsening China’s market sentiment. Many were anticipating the economic data of China market. The news was released on Tuesday and it helped STI to rebound back to previous week’s level. However, the rebound turned out to be a dead cat bounce as the market faced another drastic drop on Wednesday. Oil prices hit to new lows, triggering further fears in the market. Offshores sector was greatly affected and they are the main market m