Stock Indices turned up in November – Spectacular Month

After two months of poor performances, November saw world stock indices rose on accounts of confidence in the fight against Covid-19 with vaccines showing promising results. Joe Biden winning the US Presidential Election 2020 was another factor for the optimism that economies were looking up.

The Straits Times Index (STI) was up 15.8% for the month to end at 2,805.95 points.

Stock Indices 30-Oct-20 30-Nov-20 Change (%)
CAC 40 (France) 4,594.24 5,518.55 20.1%
STI (Singapore) 2,423.84 2,805.95 15.8%
Nikkei 225 (Japan) 22,977.13 26,433.62 15.0%
Germany DAX 11,556.48 13,291.16 15.0%
UK FTSE 100 5,577.27 6,266.19 12.4%
Dow Jones (USA) 26,501.60 29,638.64 11.8%
Nasdaq (USA) 10,911.59 12,198.74 11.8%
Mumbai BSESN 39,614.07 44,149.72 11.4%
S&P 500 (USA) 3,269.96 3,621.63 10.8%
Australia All Ordinaries 6,133.20 6,742.10 9.9%
Hang Seng (HK) 24,107.42 26,341.49 9.3%
Shanghai Composite 3,224.53 3,391.76 5.2%

The Year-to-Date changes from end of 2019 are shown below.

Stock Indices 31-Dec-19 30-Nov-20 Change (%)
Nasdaq (USA) 8,972.60 12,198.74 36.0%
S&P 500 (USA) 3,230.78 3,621.63 12.1%
Nikkei 225 (Japan) 23,656.62 26,433.62 11.7%
Shanghai Composite 3,050.12 3,391.76 11.2%
Mumbai BSESN 41,253.74 44,149.72 7.0%
Dow Jones (USA) 28,538.44 29,638.64 3.9%
Germany DAX 13,249.01 13,291.16 0.3%
Australia All Ordinaries 6,802.40 6,742.10 -0.9%
Hang Seng (HK) 28,189.75 26,341.49 -6.6%
CAC 40 (France) 5,978.06 5,518.55 -7.7%
STI (Singapore) 3,222.83 2,805.95 -12.9%
UK FTSE 100 7,542.44 6,266.19 -16.9%

On a year-to-date basis, Nasdaq was up 36.0%! S&P 500 Index was up 12.1%. The Dow was up only 3.9%.

Singapore’s STI was still down, but by a smaller percentage of 12.9% (versus -24.8% in October 2020).

Copyright © 2020, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management

What a Year!

When 2020 started, we were oblivious of what was in store for us. We were welcoming the Year of Rat in January. There were hopes for a New Year leaving behind 2019. The Gross Domestic Product (GDP) growth rate for 2019 was not particularly exciting. Singapore just managed a low growth rate of just 0.7%.

We managed to place a few S$ fixed deposits (FD) with OCBC and DBS at the beginning of 2020 with interest rates of 1.45% to 1.65% per annum. Now the FD rates for one-year tenor with OCBC is mere 0.10% per annum.

The economy collapsed and it was forecasted that Singapore’s GDP for the whole year would be between -6 to -6.5%. This is a severe recession we have not seen before since the Independence of Singapore in 1965.

The reason for this downward spiral of the economy: Covid-19 coronavirus pandemic.

The nation of workers feel the pain of this recession with pay cuts, wage freeze, lost jobs and retrenchment. Nothing can be more stressful than someone losing his/her job and to worry about paying off debts and daily necessities.

Our lives have turned topsy turvy by Covid-19. 2020 is the Year of Covid-19, lockdowns and closures of geographical borders. It is hardly time to be in celebratory mood nearing Christmas and the end of the year.

The silver lining is that it is looking up with the possibility of vaccines to prevent contracting Covid-19. There is hope.

Copyright © 2020, limkimtong for Living Investment

Posted in Life Journey

Singapore equity portfolio improved well

The Singapore equity market improved significantly this month.

Date STI Change (%) YTD Change
31-Dec-19 3,222.83 NA NA
30-Oct-20 2,423.84 NA -24.8%
23-Nov-20 2,891.63 19.2% -10.2%

The Straits Times Index (STI) was up nearly 20% from October month-end number. On a year-to-date basis, STI is still 10.2% below 2019 closing number.

My daughter’s Singapore equity portfolio jumped from a loss of 12.3% at the start of the month to a smaller loss of 0.6% now. This loss is on mark-to-market valuation.

As for our family portfolio, the loss was reduced to 30% from a loss of 40.5% at the start of the month.

This turnaround of Singapore equities is in tandem with global stock markets this month. The Joe Biden win in the US Presidential Election 2020 has a stabilising effect on the global political and economic space. Vaccines for Covid-19 are coming soon and this will be a game changer in the fight of this pandemic. These two developments alone have shored up confidence into 2021.

Copyright © 2020, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management

Prose of Life

I live through moments with feelings. Feelings that I wanted to write short verses to capture the moment. Wait a day later, the writing became less authentic. That moment was lost.

Instead of writing passages, writing short verses forming a prose suits me better. It does not have to follow grammatical rules of a proper essay writing. I tried to follow some form of structure such as fixed number of lines in a stanza.

Prose of Life is a collection of life moments I experienced. It has five themes.

  1. On Ageing
  2. Covid-19
  3. Behaviour
  4. Nature
  5. Life

Copyright © 2020, limkimtong for Living Investment

Posted in Life Journey

Hyflux comes under Judicial Management

After more than 2 years (from 22 May 2018) when Hyflux filed for bankruptcy protection, Hyflux comes under judicial management on court order dated 16 November 2020.

The judicial managers Patrick Bance and Hamish Alexander Christie (of Borrelli Walsh Pte. Limited) have control over Hyflux now. They represent the Unsecured Working Group (UWG) of 19 banks that were owed $931 million. Their interest is really to recover these debts from Hyflux.

Perpetual Capital Securities and Preference Shares Securities (“PnP”) holders are left in the cold. Ordinary shareholders will be last on the list with any say on the operation and recovery of investments in Hyflux.

I wrote off all my shareholding investment in Hyflux exactly one year ago and book the full loss in my investment portfolio. There is no hope of recovery for ordinary shareholders like me.

Copyright © 2020, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management

SPH gone into net loss for financial year August 2020

The stocks in my portfolio improved for the two weeks this month. One stands out is Singapore Press Holdings (SPH), in the OPPOSITE direction. I am sitting on a loss on investment of 75% from my purchase cost.

Average cost of investment was $4.12. It is now trading at $1.03.

Financial Year 2020 ended 31 August 2020 of SPH had the following financial indicators:

Indicators FY2020 FY2019
(Loss)/Profit attributable to shareholders ($83 million) $213 million
Returns on shareholders’ funds -2.5% +6.1%
Net Assets attributable to shareholders $2.06 per share $2.16 per share
Dividends declared for year 2.5 cents 12.0 cents

Clearly, these numbers do not augur well for shareholders. Dividend was down nearly 80%.

The management explanation was that the corporation was badly affected by Covid-19. The net loss for the year was “largely due to a non-cash $232 million decline in valuation of investment properties”. This was significant.

Confidence in SPH is not high. Price to Book ratio is $1.03/$2.06 = 0.5.

One good aspect was that the Cash Flow Statement showed an improvement in cash position.

Copyright © 2020, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management | Tagged

The Older I Get

The older I get

I begin to appreciate my older brother better

Let past dislike of him go

I enjoy him better;

The older I get

I receive a song on growing old with dementia

If I forget my name

Please hold my hand;

The older I get

I find love in friendships

True friends come forth

Make my days worth living;

The older I get

I have more problems with my health

Like an overused machine

Breaking down one by one;

The older I get

I require less luxurious life

Glamour and fame

Fall by the wayside;

The older I get

I become more sentimental

Photographs of younger days

Become my companion;

The older I get

I begin to document my past

Stories to tell, snippets of life experiences

Worth recalling;

The older I get

I remember less of hurt from past

It is insignificant

To spend energy on;

The older I get

I embrace religion more

Mental  comfort

To live out remaining days;

The older I get

I get closer to the ones I love

The accidental touch, the quick look, the tone

Express so much.

Inspired by song “The Older I Get” by Alan Jackson

Copyright © 2020, limkimtong for Living Investment

Posted in Things beautiful and meaningful

STI continued to rise steadily

We are into second week of November. The Straits Times Index (STI) had risen nearly 12% from end of October.

Just two weeks ago, the STI was down 24.8% from the start of the year. It is now 15.9% lower recovering nearly 9.0 percentage points in two weeks.

Date STI Change (%) YTD Change
31-Dec-19 3,222.83 NA NA
30-Oct-20 2,423.84 NA -24.8%
12-Nov-20 2,711.39 11.9% -15.9%

This is good news because Singapore stock market had been a laggard for so long this year compared to other stock markets.

Copyright © 2020, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management

Going to support SIA

Singapore Airlines (SIA) is our national carrier. Why are we going to support SIA?

One incident made us more determined to fly SIA when time comes in the future. We booked a flight late last year to fly in May this year. Because of Covid-19, our plan was scuttled. We converted the promotional fares into Open tickets, which was not part of the terms and conditions of a promotional fare ticket. SIA allowed it.

As this year draws to a close, we felt that we had to cancel the air tickets. There are four of us in this. When I submitted an On-line Form to SIA for this cancellation on 1 November, I was pleasantly surprised that the refund came five days later on 5 November. The refund came without any question asked. It was that straightforward.

We have so much faith in SIA after this incident and I believe that many others felt the same way. We are going to keep SIA flying high. In fact my wife subscribed to the recent Rights Issue and the Mandatory Convertible Bonds in full as a shareholder.

This is SIA and this is our national airlines.

Copyright © 2020, limkimtong for Living Investment

Posted in Life Journey

Confidence returns to Singapore stocks with Joe Biden Win

Joe Biden beats Donald Trump for the US Presidential Election 2020. Election closed on 3 November (Tuesday) with Joe Biden/Kamala Harris claiming victory on Sunday.

The Straits Times Index (STI) is now up 1.32% to 2,612.59 points (1.24 pm Monday 9 November).

Since the beginning of November, the STI is now up 7.78% (from 2,423.84 to 2,612.59) in one week.

Singapore stock market cheers with certainty of a stable US government administration under Biden.

Copyright © 2020, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Posted in Financial Management