Joey was interviewed on 938 Live after the trading session ended on Friday, 29 September 2017.
The Singapore market has been rather lackluster recently in contrast with the US markets that has continued to push towards new high. The question is, can we play catch up eventually as we head into the last quarter of the year and maybe even end it well?
What are some of the sectors dragging the STI index lower and more importantly, can the bulls regain control just like we have experienced as we began the year?
Joey will share some of the key levels we should keep an eye on the STI for the reversal to occur and what is 1 stock that you can consider as an opportunity in this market?
The full transcript of the interview can be seen below too.
Joey, how did the markets fare today?
The Singapore market opened down 4 points today, bucking Wall Street’s rally with DOW Jones closing up 40 points.
This was mainly due to Donald Trump’s tax cut proposals facing opposition and also comments from Federal Reserve Chair, Janet Yellen that hinted towards a rate hike in December.
Back at home, the weakness continued after the opening bell with the STI selling down by 26 points in the morning. This was mainly led by banks like OCBC and DBS and also heavyweight property counters like CityDev, all tanking close to 1%.
We started to see buyers coming back in the afternoon with most of the blue chips rebounding from their day lows but still not enough to bring STI into positive territory.
So STI was mostly negative throughout the day with occasional bargain hunting and finally we saw STI closing down 7 points at 3220.
With the Dow Jones hitting a record high, what’s your thoughts on the Singapore market as we head towards the last quarter of 2017?
Well indeed, we have continued to see strength in the US markets over the past 3 weeks with Dow Jones and S&P 500 still pushing above multi-year highs. There are actually some concerns of rich valuations at the moment but the US market still remains rather bullish for now.
Back at home, unfortunately, the STI has not really catch on the bullishness and after hitting a high of about 3354 about 2 months ago, we have fallen by about 150 points.
This was mainly due to banks selling down from their recent highs and also Telcos like Singtel and Starhub facing downward pressure due to an impending entry of a new competitor in the industry.
Technically, we are currently seeing resistance at 3250 for the STI and seems like we do need a catalyst to get pass this level.
So as we head into the last quarter of the year, we are back to the key support level at 3200 which has been holding for about 5 months. Therefore, there can be pockets of opportunity with buy ups seen on any dips so far.
I was going to ask you Joey, on a brighter note, are there still buying opportunities for investors?
Yes, as mentioned, there can be still buying opportunities in this market. One can consider Banyan Tree for more potential upside. Its management is optimistic about its outlook going forward and the 4th quarter of 2017 is also expected to outperform underpinned by tourism growth in Thailand.
Fundamentally, it has a huge beachfront land bank in Thailand that holds a development value of between S$5-6b which it can potentially unlock in the future.
Technically, we have also seen Banyan Tree supported strongly above the 0.60 level for a month with its uptrend still firm above.
It is currently facing some resistance at 0.66 but any specific price action above this level can see the upwards momentum continue towards 0.70 with indicators also looking good for now.
Back to you.