It was just last Sunday when I blogged about the fact that Singapore's SGX often exhibits strong correlation with United States' markets (
here). Last Friday's tech sell off on US's markets have demonstrated the point right smack on cue.
For the uninitiated, while Nasdaq and NYSE have continued to perform admirably, there was a widespread fall in tech stock prices. Reasons attributed to the loss includes Goldman's unfavorable report, Apple's new Iphone using a slower processor and profit taking,
none of which were compelling fundamental explanations.
The losses of some tech stocks are illustrated below.
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| Source: Google Finance, compiled on 12th June 2016 |
Singapore's manufacturing stocks then took a beating when the market opened for the first time after Friday's tech rout. The losses of SGX manufacturing stocks are illustrated below:
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| Source: Google Finance, compiled on 12th June 2016
*counters held by Author, still in paper profit positions |
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