Singapore Stocks

The bull is looking at you.

That is my wave count for Singapore Strait Times Index (STI). Its last low of 1456 on 9 March can be the end of Major Wave A. It is likely that STI has started its Major Wave B ahead of Dow. A more pessimistic count is to assume the 1456 low as sub-wave i of wave 5. Under this scenario STI is lagging behind Dow by 2 sub-waves which is unlikely as Singapore and Hong Kong bourses usually followed Dow very closely. It is more likely that STI is already in the rebound wave.

The 6 months chart shows that STI has just completed its sub-wave i that consists of 5 mini waves, thus sub-wave i can not be a corrective wave, it has to be the first sub-wave in the uptrend direction because it has 5 mini waves instead of 3 for corrective wave.

There are many good stocks in Singapore Stock Exchange. As explained in my previous posts, I expect bank stocks and property stocks to out perform other stocks in general, there is always some exceptional stocks in other sectors.

Capital Land is one of the good property stocks. It has just completed a 1 for 2 right issue at $1.30, 1.412 billion new shares will be listed on 23 March (next Monday). The fund from the right issue total $1.83 billion can do wonder at this moment when stocks are cheap. I expect its price to weaken further due to the listing of 1.412 billion new shares. The drop will complete its sub-wave v of wave 7 and that would complete its corrective wave (7 waves can be taken as equivalent to wave A-B-C). It is expected to start its uptrend after next week's pull back.

From the 6 months chart, $1.50 is likely to be the bottom and is a good entry point. Capital Land was created in 2000 from the merger of Pidemco Land and DBS Land. Its real estate and hospitality portfolio spans more that 120 cities in over 20 countries. Without the current crisis there is no way to get this stock at less than $2.00.

Another good stock is Singapore Exchange SGX. My wave count is as shown above. Similarly it is currently in its last wave down. If the market is expected to run for 6 to 8 months, trading volume is expected to pick up, security firms and stock exchange will perform well.

It is likely that DBS bank has completed its downtrend movement, at less than $8.00 the stock is a good buy.