Dear all,
I have been doing my regular market analysis (homework) and after reading many pessimistic or “not so good” reports, I decided it is an opportune time to do a short write-up on our Singapore market.
Recent sell off in the equity markets due to
The recent sell off may be attributable to the following reasons
- a) Exodus of funds from equity markets
Based on
Figure 1 below, U.S. funds saw the largest weekly outflows amounting to US$12.3b, the largest since 2000. The Asia funds suffered US$4.9b of weekly outflows.
Figure 1: Exodus of funds
- b) Technical breakdown in the charts
STI has traded within a tight range of approximately 130 points from 2 Jun 2015 to 21 Jul 2015, before it broke down. Coupled with the simultaneous breakdown in the other equity markets’ charts such as S&P500, Hang Seng, China, there was widespread risk aversion.
- c) ...
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