Equity Portfolio Performance vs STI

I am trying to see any correlation between my Singapore equity portfolio against the Straits Times Index (STI).

The table shows portfolio gain or loss in percentage term measured between current value against cost and STI on that particular date. It has 10 months of data starting November last year to August of 2013.

Date Portfolio Gain/Loss (%) STI
30 Nov 2012 – 4.57% 3069.95
19 Dec 2012 – 5.21 3158.57
30 Jan 2013 – 1.34 3285.90
5 Mar 2013 – 2.33 3248.26
28 Mar 2013 – 2.50 3308.10
30 Apr 2013 – 4.08 3368.18
23 May 2013 – 4.41 3393.17
24 Jun 2013 -10.83 3074.31
26 Jul 2013 – 6.75 3236.10
23 Aug 2013 – 11.55 3088.85

I started with loss (– 4.57%) at end November when the index was 3,069.95. The loss started to narrow from 30 January (- 1.34%) when STI rose to 3,285.90. Loss remained low from 5 March to 23 May when STI was between 3,250 and 3,393 points.

The STI peaked on 22 May 2013 (at 3454.37) and went down from then on because Ben Benanke, Chairman of Federal Reserve Board (Fed), told Congress about the possibility of scaling back the monthly US$85 billion bond purchase starting central bank’s next few meetings. The intention to tighten monetary policy caused flight to safety and reduction in liquidity in the global financial markets.

My portfolio lost 10.83% on 24 June when the index was 3,074.31. In July, the STI picked up to 3,236.10 and my portfolio pared the loss to – 6.75%. But a month later, 23 August, my equity portfolio lost 11.55% when the index was 3,088.85.

In some sense, my Singapore equity portfolio went down whenever the STI was down. Conversely, it was somewhat true too.

Note that this is rough and ready gauge of performance of portfolio. I did not take into account those stocks bought or sold during each period (though not material in relation to portfolio size). New stocks and sold stocks are factors to consider for accurate reflection of correlation. In fact, dividend is the other factor to consider too.

Copyright © 2013, 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.

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2 Responses to Equity Portfolio Performance vs STI

  1. Singapore Memory Project says:

    Hi Kim Tong,

    We tried to look for your email contact but it does not seem to be available on your blog. So we are contacting you via a comment.

    On behalf of the National Library Board (NLB), we would like to invite you to pledge your blog to the Singapore Memory Project (SMP).

    We find that your entries on the finance sector would be a great addition to the Singapore Memory Project.

    We think your blog would offer a different perspective. Whether your posts are an account of your daily life or an expression of your thoughts, our project hopes to find a home for these memories so that it can help build a ground-up understanding of Singapore.

    If you believe memories are worth preserving, simply pledge your blog here: http://singaporememory.simulation.com.sg/Public/Pledge.

    The SMP is a national initiative started in 2011 to collect, preserve and provide access to stories, moments and memories related to Singapore. For more information about this initiative, you may wish to contact Mr Patrick Cher at patrick_cher@nlb.gov.sg or read the FAQ.

    Yours sincerely,
    Krishna

    [Simulation Software & Technologies (S2T) Pte Ltd. is the officially appointed vendor for SMP for the period Nov 2012 to Dec 2013.]

  2. limkimtong says:

    Hi Krishna, I have done the pledge to SMP.
    Best Regards,
    Lim Kim Tong

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