For me, compared to the years before, i would say that 2016 has been rather lackluster for the Singapore market in terms of the market movements.
For 2015 we saw the rise and the fall of the Shanghai Stock market with STI following in tandem hitting a high of above 3500 to less than 2600 in the beginning of 2016.
After trading below 2700 for the 1st 2 months of 2016, we then started to see some actions back in the market with OIL prices taking centre stage. Oil prices started to rebound from a low of about USD26 to more than USD 40 in a month and that's when we started to see some positive actions in oil and gas counters till Mar - Apr.
However, this rally was met with more selling when financial results were released and many come to know about the profitability of some of the O&G counters in the industry. We even had news of one company almost bankrupt and finally under judicial management.
To recap, STI has been in the trading range from 2700 to 3000 for the last 10 months of 2016 with it still unable to break the 3000 mark.
We have seen Dow Jones and S&P 500 hitting new highs over since November but it seems like the STI is still not ready to make the move above this 3000 level. The recent rally this month was led by banks where we saw it almost touch the 3000 only to be met with more selling again.
For 2017, I think we may still face uncertainty with the economic data starting to point south. And one got to be really selective, especially with long positions.
With 3000 as the cap for now, we may still be consolidating in the next few months back to 2850 then 2700.
I think it's also good to be prepared ride any downside if opportunities present itself. :) Good luck and happy new year to all. ;p
Huat ahhh!
For illustration purpose only
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