Joey was interviewed by Michelle Martin on 938 Live after the trading session ended on Friday,  29 May 2015. Do check out his Views on the market and what stock you should be watching right now. The full transcript of the interview can be seen below too.

Singapore market opened lower today, down 30 points on the back of a weaker US showing last night with Dow Jones closing down by 36 points. The weakness was mainly due to ongoing concerns about a Greek default and also a sharp drop in China indices yesterday affecting market sentiment.

STI recovered slightly in the afternoon with banks like Ocbc and Dbs rebounding from the day lows and eventually closing down 26 points at 3392.

STI will continue to be volatile for the next week with some downside expected if Hong Kong and China markets continue to be weak. We have seen the Shanghai Composite Index tanked by more than 6% yesterday and slightly further today.

These were mainly due to brokerages tightening requirements on margin financing and also China’s Sovereign Wealth Fund cashing out on some of its bank holdings. So this can have a psychological impact on the market.

Investors would also have to watch the headlines coming from Europe on the Greek debt crisis.  Greece aims to reach an agreement by Sunday but its creditors are not hopeful. So there is a possibility that Greece will not be able to get the money still available under its current bailout plan by the deadline end of next week.

Moving back into the Singapore Market, we have also seen the STI index dipping below the 3400 points support today for the first time after more than 2 months.  So with more negative headlines, we may see more downside towards the 3350 level where we can expect some bargain hunting to take place again.

Well, one can look at Sheng Siong for potential capital upside. Sheng Siong has recently reported its 1Q results which were above expectations with 1Q15 earnings expanding by 12.2% YOY, driven by sales growth. Sheng Siong has also been consistently growing its pool of retail stores in neighbourhood areas with about 5 stores opened over a 6 month period.

Fundamentally, Sheng Siong’s valuation looks attractive with it trading at about 25x versus the 30x P/E for the regional market peers in Thailand and Phillipines. At current prices, it is offering a dividend yield of about 4% which is fairly attractive.

Technically, Sheng Siong has hit a high of 0.93 last week and has since retraced down on a weaker market closing at 0.865 today. Support would be at 0.84 for now and there may be a rebound from this level with longer term uptrend still clearly intact. On a side note, Phillip Securities also has a Buy call with target price of 1.00 for Sheng Siong.