Thursday, January 19, 2017

938 Live Singapore Market Updates - 18 Jan 2017

Why were markets mixed, ahead of incoming U-S President Donald Trump's inauguration on Friday?
Market was down following the the US market, as Dow jones fall slightly by 0.3%. The USD index descended in response to the remarks made by the US President-elect Donald Trump that USD was overly strong. The US stocks softened last night. Asian markets traded mixed with Hong Kong stocks faring well, Hang Seng index up more than 1%, Singapore STI fall to the low of 2990 and manage to recover the losses to close at 3000. Overall market was pretty concern about the Donald trump's inauguration this friday, but we have not seen any big surprise move yet.

Turning our attention back to Singapore, the company earnings season is gearing up in full swing. What's your take on this?
I think with the Earnings coming out, market will be more exciting and also expect to have more volatility. Next week 26 Jan, we will see Keppel Corp earnings , with the price moving higher over the past 2 month, this could be telling us that Oil stock is recovering. I think we can look forward to watch some of this oil stock's earnings.

Singapore's STI is hovering around the three thousand psychological mark. Is the local market due for a correction?
Over the past 2 month, most of the gains on the index stock was due to the bank sector, however the rest of the other sector did not really have a big move, hence if there is a correction, i would think that the banks will probably pull back a slightly as it is in the overbought region. With US dollar weaken last night, i see that some of the stock started rally, hence if STI were to pull back below 3000 due to banks having some pull back, some other sector might play catch up and move higher. Hence instead of pulling our money out of the market, i would adapt to other stronger stock in the Oil sector or Food sector.

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