Joey was interviewed on 938 Live after the trading session ended on Friday, 27 October 2017.
About 2 weeks ago, we started to see some strength coming back in the Singapore market with STI breaching some key reversal levels.
US markets has continued to push to new multiyear high too over the past week and it seems like we have finally caught on their bullish sentiment a well.
The question is, can this bullishness still continue as we end the year 2017 and maybe even into 2018?
What are some of the sectors pulling the STI index up recently and more importantly, what are some of the stocks that Joey has on his watch list right now?
The full transcript of the interview can be seen below too.
Joey, let’s talk about the markets, how did this fare today?
The Singapore market opened up 5 points today, in line with Wall Street’s rally with DOW Jones closing up 71 points. This was mainly due to upbeat earnings from U.S. Tech giants like Amazon and also with the European Central Bank announcing plans to extend its stimulus.
Back at home, the strength continued right after the opening bell with the STI rallying up by more than 20 points. This was mainly led by all 3 banks, OCBC, UOB and DBS rallying by close to 1% and with them breaching key levels to find new multiyear highs.
We started to see some slight selling in the afternoon but buyers were pretty much still in control and came back much stronger at day end.
So STI was positive throughout the day and finally we saw STI closing up 30 points at 3386 with the banks all closing at day highs as well.
Joey, let’s talk about the Dow Jones and the S&P hitting new record highs over the past week, give us your thoughts on the Singapore market as we’re approaching the end of 2017?
Well indeed, we have seen strong buying pressure coming back in the US markets over the past week with Dow Jones and S&P 500 both hitting new multi-year highs. In fact, the Dow Jones may even test the key 23500 level that may set off a new wave of buying. The main driver for the rally right now is earnings and we are seeing pretty good numbers.
Back at home, the STI has finally caught on the bullishness about 3 weeks ago with it breaching the 3280 level. We have seen a gradual rally of the market led by some of the property heavy weights like Citydev and also the oil and gas counters like Keppel Corp, both rebounding from their lows in September.
Just today, the STI has broke above the 3360 level to a new 2 year high and we can expect more upside towards the 3400 in the short to mid term with this level holding now.
So as we head into the last 2 months of the year, I think that the market has done pretty well this year rallying by more than 16% since 1st of Jan. My sense is that we can still see more strength going forward on selective counters with the STI ending strongly.
And let’s talk about the bullishness in the market, are there any sectors or counters that you’re watching right now?
Yes, I am pretty bullish on the banking sector as shared with my inner circle members recently. Over the past few days, we have actually seen some pretty solid price actions in all the 3 banks with them breaking new highs today too.
Fundamentally, OCBC has just reported its 3rd quarter 2017 results with net profit rising by 12% YOY, beating expectations. This was due to rising income from wealth management and also healthier lending margins.
Technically, all the 3 banks uptrend looks intact for now and we like DBS above 22.50, OCBC above 11.60 and also UOB above 24.60 where can see more upside with this key levels holding for now.
So one can consider accumulating some of these counters on any pull backs to ride the final rally as we head into 2018.
Back to you.