Post Reply
1-17 of 17
Beware :
Next week counting T+3 for contra players,
T+4&5 for forced selling from Tuesday or 2 days ago.
Add T + 6 & 7 for further forced selling from margin financing of clients & possibly T+8 for bigger clients given more time by brokerages if no top-u
Unlike other major declines of catastrohic proportion due to grave fundamental faults, the correction we are seeing in S'pore now is limited by virtue that there are many underlying supports and a still definite favourable economic picture going forward. As as I am aware, from US to China there is no slack of economic growth and in fact these nations are still enjoying unprecedented prosperity. the Americans are still enjoying life and spending ( from factual information I have with them ) and the Chinese and Indians are really in the first flush of their new economic boom which will last for many years. With this reckonings the steep falls we are seeing in our STI will in my opinion be short live - even during the last few days of plunges whilst there are funds withdrawing facing redemptions all over the world markets , we have also observerd that at the bottom of each day inevitably big foreign funds opportunistically move in to buy from the weaker hands. Players in our local markets are now more careful and sophisticated and unlike earlier years I do not foresee widespread severe force sellings relentlessly. In fact what I have observed are limited intermittent sellings and unwinding of small section of speculators. This present global downtrend is the strategy of a more united central bankers from Washington to Beijing , and it is quite evident that much of the froth from the long lasting bull markets globally have been removed. We see Bernanke coming forth to calm the market ( for in macro economic management , care must be taken not to unravel the market too much that an uncontrollable downspiral take over). The Shanghai market is actually a misnomer for it is less well regulated and savvy as the more sophisticated free capitalistic world - actually it is more a gambling machine than a reflection of the economy of China; erstwhile the Chinese regulators have failed in cooling the market, but with the opening to the world under the WTO agreement there is urgency for the Beijing regulators to ensure their financial institutions quickly come up to speed to compete with the like of sharper financial institution entering from the free world - the recent liberalising of the banking sectors ( when DBS received approval to incorporate locally amongst other major world banks ) is a moot factor. The Chinese regulators are now really serious and what we are seeeing is limited use of "sledgehammers" to knock the chinese cowboys of their financial sector into better shape. This fall in Shanghai composite is really not a true reflection of continuing Chinese economic growth which will continue for decades to come. It is a needed use of the rod to tame the wiildness of the SS market and people should see it for what it is and not a reflection of economic malaise to come. In fact a wider horizon is opening in China with the Chinese leadership determined to develop the Inland which will increase domestic demands and standing which so many of our locally listed "red chips" will boom in times to come. There are fears that after the recent falls the foreign funds will take a long time to return, this has not happened , the foreign BBs are ever ready to move in again once the weaker hands are shaken out. The Asian story with S'pore embedded will only attract more investors whether the hedge funds quit or not, we are very fortunate that we are recognised as a business hub par excellence with important linkages to East and West. Guess what, with the large falls in our blue chips engine of growths recently we have been accumulating daily, the BBs cannot wait for the last dwindling few drops before buying in - certaintly not like what with 12 lots of UOB done at the low today. The recent falls have put these blue chip index stock within the striking range of the foreign and local BBs now.
yes, I agree, watch first...
don't panic, in this situation, the best strategy is to wait for reversal signal before you act.
Be patient, hold cash and wait for the right time to pound.
also pity those who rush in to buy now.
pity those who panic and cut loss
Pity the coffee shop ah soh at the Dover hawker centre, with a teletext tv monitoring shares. Saw her so moody this afternoon. I am sure there are many ah pehs and ah sohs in similar situation these 2 days. Must have suffered a huge loss.
How true the saying is :'when the ah peh and ah soh starts to make money in the stock market, it's time to run.'
A rebound is expected due to oversold situation
Market tends to overshoot. So don't panic. The ones with the holding power will win at the end of the day.
Remember this so-called analyst was predicting the STI to reach 3800 not too long ago. Now when market is falling, he is saying 2800????
Hi Savysamyeo, are you here and reading this post ? If so, perhaps you would like to share with us your thoughts and comments on mombootan's post. Thank you.
I think to go down to 2,900 for the STI can be a likelihood because it's about a 10% retracement from current level. But to the technical analysts, this is not a crash. It's consolidation.
now you tell us, too late man.
Very bad news. If they sell out, it will take very long time before they return.
be careful
this is bad news.
Singapore stocks gave up their early gains on Thursday, to end at their lowest level in nearly five weeks after a late afternoon selling-spree led by foreign institutional investors, brokers said.
Brokers in the city-state said the slide in blue chips was powered by sell-orders placed by London-based investors, mainly hedge funds.
"It appears that these foreign funds are trying to raise cash here (Asia) to cover their losses in the U.S. and Europe," said Najib Jarhom, head of research at Fraser Securities.
Analysts such as chief strategist at UOB Kay Hian, Yang Sy Jian, said the momentum of selling that started on Wednesday could pull the market down to levels of between 2,700 and 2,800.
"The market will remain volatile with a weak bias for quite a while, maybe for some weeks," he said.
Brokers in the city-state said the slide in blue chips was powered by sell-orders placed by London-based investors, mainly hedge funds.
"It appears that these foreign funds are trying to raise cash here (Asia) to cover their losses in the U.S. and Europe," said Najib Jarhom, head of research at Fraser Securities.
Analysts such as chief strategist at UOB Kay Hian, Yang Sy Jian, said the momentum of selling that started on Wednesday could pull the market down to levels of between 2,700 and 2,800.
"The market will remain volatile with a weak bias for quite a while, maybe for some weeks," he said.