This week’s Singapore stock market is indeed falling and rising like a yoyo.
The Straits Times Index (STI) closing from Monday to Friday were:
Date Close +/- from previous Close
26 Mar (Mon) 3204.55 -1.27
27 Mar (Tue) 3234.11 +29.56
28 Mar (Wed) 3201.75 -32.36
29 Mar (Thu) 3228.88 +27.13
30 Mar (Fri) 3231.24 +2.36
The stock market is now trading sideways. It does not have the momentum to push it either upwards or downwards consistently.
Looking at 2 stocks (with substantial trading volume) at their closing prices:
26 Mar (Mon) $21.90
27 Mar (Tue) $21.60
28 Mar (Wed) $21.00
29 Mar (Thu) $21.40
30 Mar (Fri) $21.40
26 Mar (Mon) $6.40
27 Mar (Tue) $6.50
28 Mar (Wed) $6.45
29 Mar (Thu) $6.45
30 Mar (Fri) $6.55
If you trade on basis of recognising the long term value of your stock, then the price movement of this week should not alarm you. Price movement of this nature is normal as there are day traders who move in and out of the stock market within the day to make gains from the little movement of stock prices within the day. So we should not be the target for them to make gains at our expense.
Written on 3/30/2007 5:00 PM
Copyright © 2007, the author known as LKT in Singapore.
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.