After years of stagnant growth, things are looking up for Singapore’s tourism sector again

Following recent years of relatively stagnant performance, tourism arrivals in Singapore are expected to finally see an uptick on the back of a surge in intra-regional tourism, according to a new report from Colliers International, the commercial real estate services firm. The first quarterly Colliers International Hotels Insight Report, which features major trends in destinations across Asia … [Read more...]

Three Sectors that Continued to Beat the Market in March

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The Information Technology (IT), Materials and Real Estate Management & Development Sectors were again ranked as the best three performing Sectors last month, following the same rankings for the three Sectors in February.Alliance Mineral Assets, China Sunsine Chemical and Kingboard Copper Foil led the Materials Sector Leaders higher in March. Alliance Mineral Assets announced Lithium and … [Read more...]

Strait Times Index sitting on the fence

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Strait Times Index sitting on the fence Straits Times Index ended first quarter of the year with a bullish closing. Market participants decided to pick themselves up after the fall that was triggered by concerns of Trump’s lacking of power to implement the policies that he had promised. In the early week, STI managed to rebound from the low of 3112 level and head towards its resistance at … [Read more...]

Nostramoney 2017

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It's been a while since I've done one of these. I got Trump right though, 7 months before elections. Maybe it's luck, but I did make a bet with a friend and pocketed some nice money because of the insane odds. US equities head lower within the next 2 quarters (at least a ~10% drop in the indices) Short term rates hit a ceiling Long term rates continues to stay low Oil bounces around … [Read more...]

What Traders Need to Know about the Singapore Market?

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At the start of 2016, global bourses were trading with tremendous anxiety. In early 2016, many of the world’s major indices suffered declines of up to 20%. Much the same was true of the Singapore market. Now, things are a little different, with the S&P 500 index, the NASDAQ composite index, and the Dow Jones Industrial Average rising to near-record levels. Of course, the Trump Factor has … [Read more...]

How Interest Rate Changes Affect REITs

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Real estate investment trusts (REIT) is a class of stock investment that many believe are very much affected by global interest rate changes. For the past 35 years, the world have been in an environment where interest rate is getting lower and lower. There are periods where interest rate do rose, however the trend is down. For the past 5 years, there have been on and off voices that warns us … [Read more...]

Industrial Mining Stocks Made a Solid Start to 2017

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SGX lists four stocks focused on mining Industrial Minerals – Lithium & Tantalite, Phosphate, Limestone and Marble. Mining activities of these stocks span Australia, China and Malaysia. These minerals have diverse industrial applications – from agri-business to construction to health supplements. Three of the four stocks have generated gains in 2017 YTD, with Lithium & Tantalite miner … [Read more...]

4 bumps the UK will have to face now that May has triggered Article 50

Even with the official commencement of the Brexit process – as finalised by Prime Minister Theresa May’s signature on the letter to trigger Article 50 of the EU’s Lisbon Treaty today – Bank of Singapore’s (BoS) chief economist Richard Jerram is certain that a deal for the UK to leave the Union is “almost impossible”. “To reach an agreement on such a complicated issue as market access – a new … [Read more...]

Expansion of the Utility Sector

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The capitalisation of Singapore’s Utility Sector has expanded by 80% over the past five years outpacing the capitalisation growth of the MSCI AC Asia Pacific Utility Index and the parent MSCI AC Asia Pacific Index. Together the 10 stocks of Singapore’s Utility Sector supply water, gas and independent power through renewable electricity production. The 10 stocks have averaged a 5.2% YTD gain, … [Read more...]

Straits Times Index facing correction risk

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Straits Times Index facing correction risk Straits Times Index faced a week of profit taking as concerns on US president Trump’s policy implementation starts to face headwind last week. Market participants made use of such opportunities to exit the market despite a strong start in the week. 3160 resistance level held firmly despite being broken for a few days. The strong gap down action on … [Read more...]

Ernest’s market outlook (24 Mar 17)

Dear all, After 109 trading days, S&P500 finally staged a 1% drop on 21 Mar 2017. Is this the start of a correction? Let’s take a look at the charts. S&P500 Just to recap what I have mentioned on 10 Mar 2017 (see HERE), I wrote “All the EMAs are rising steadily. Since 8 Nov 2016, S&P500 has not traded below its 20D EMA for more than one trading session. Amid positively placed … [Read more...]

Significant Expansion of Singapore’s Coal Mining Stocks

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The number & combined market cap of SGX listed stocks focused on thermal coal mining in Indonesia has grown fourfold over the past three years. Following Geo Energy’s listing in 2012, three RTOs have seen Resources Prima Group, BlackGold Natural Resources and Golden Energy and Resources list on SGX. Two of these four stocks - Geo Energy Resources & BlackGold Natural Resources - have … [Read more...]

Technology Hardware Stocks form a Firm Foundation for Industry 4.0

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Singapore Manufacturing Sector represents 20% of Singapore’s 2016 GDP. The Government is focusing on key growth areas such as advanced manufacturing and Industrial IoT. SGX’s Technology Hardware companies form a firm foundation for the paradigm shift to Industry 4.0. These companies are mostly cash-generative and dividend payers. The 10 highest yielding stocks within the Technology Hardware … [Read more...]

Straits Times Index attempting a breakout

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  Straits Times Index attempting a breakout Straits Times Index continued to its bullish streak while US Federal Reserve announced its first interest rate hike for this year. The week was first greeted with cautiousness as many chose to stay sidelines ahead of the announcement of the interest rate hike last Wednesday. Some traders anticipate the possibility of bearishness ahead of the … [Read more...]

Economists raise Singapore growth forecast for 2017: MAS survey

Economists have raised their forecasts for Singapore’s gross domestic product (GDP) growth in 2017, according to a survey by the Monetary Authority of Singapore (MAS) unveiled on Wednesday. The median forecast of 23 economists surveyed in mid-February pointed to a 2.3% GDP growth this year. This is an improvement from the 1.5% growth forecasted in the previous MAS survey published in … [Read more...]

Recent Corporate Activities of Gold Mining Stocks

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Singapore’s trio of gold plays have averaged an 3% return in the 2017 year to date. The three miners, CNMC Goldmine Holdings, Wilton Resources Corporation and Anchor Resources are in different stages of the gold exploration, development and production. CNMC Goldmine Holdings recently completed a subscription of 51% of the shares in the enlarged share capital of Pulai Mining Sdn.Bhd. Pulai … [Read more...]

Blessing in Disguise: US Interest Rate Hike

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US has just increased the interest rate to 0.75-1%.  The global stock markets respond positively.  When the interest rate hike has become a predictable pattern, eg. 0.25% quarterly or 1% yearly, global investors would have priced in the impact, fear will be overcome by greed until the arrival of next global financial crisis. We could observe the emotions of market, how it affects the stocks in … [Read more...]

Expectations of March Fed Hike Near 100%

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Expectations of a March Federal Reserve rate hike are near 100% as economic data strengthens. Federal Reserve policy rate decision expected on Thursday, 2.00AM, Singapore time.  Cyclical sectors typically have strongest positive correlations to a rising interest rate environment. Singapore banks have generated an average total return of 17.8% (vs STI’s 12.2%) since 8 Nov-16, on the back of … [Read more...]

Straits Times Index boosted by property cooling measures

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  Straits Times Index boosted by property cooling measures Straits Times Index managed to end another week bullishly and continued to head towards its strong resistance at 3160 level. Volatility was seen during the week; moving like a headless creature. The highest that STI had attempted to reach is at 3150 level which was clocked on Wednesday. However, this gain was quickly given back on … [Read more...]

Why Fresh Water is Such an Important Commodity – Something to ponder about with the Singapore Budget annoucement

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One of the changes announced in the 2017 Singapore budget was that we would be paying a higher tariff if we do not conserve water. This is especially so for those businesses or household who spends more than 4 cubic meters of water. The changes can be summarized by the table above. In the future we won’t have a sanitary appliance fee. The sanitary appliance fee is really stupid if you ask … [Read more...]