Dear all
With reference to my market outlook published on 3 Oct (see HERE) citing opportunities in our Singapore market, STI has soared 191 points, or 6.3% from 3,051 on 1 Oct to close at a year to date high 3,242 on 5 Nov.
Will STI continue to march higher, or will there be some profit taking?
Very briefly, my personal view isIt is likely that STI may face some profit taking in the near term, attributable in part to the following factors:
a) With reference to Figure 1 below, MSCI Singapore index will undergo a rebalancing in end Nov. The largest impact will be felt by our Singapore banks and Singtel where their weightage will be reduced to pave the way for the increase in weightage in SEA Ltd. Based on https://sginvestors.io/, DBS, OCBC, UOB and Singtel collectively comprise 47.8% of our STI. Thus, if there is
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