How can investors play this stock market?

In my earlier post in January, I mentioned that there were uncertainties leading to unstable investment climate. This continues in February with regard to the Singapore stock market.

Let me illustrate with some stocks and their share prices from 5 February to 12 February.

The table below provides daily share movement (in $) from one date to the next date.

Stock 6-Feb 9-Feb 10-Feb 11-Feb 12-Feb
Comfort Delgro -0.02 -0.01 0.15 0.05 -0.16
DBS -0.04 0.07 0.05 0.01 -0.16
Keppel Corp 0.07 -0.25 -0.08 0.12 -0.11
SIA -0.03 -0.29 0.34 0.02 -0.17
UOB 0.13 -0.01 -0.04 0.04 -0.12
UOL 0.03 0.09 0.18 0.38 -0.42

Take a look at some wild swings of share prices. One day, it was up and the next day it was down

Comfort Delgro’s share was up 15 cents on 10 February and came down 16 cents today. Keppel Corps was down 25 cents on 9 February , went up 12 cents on 11 February and down 11 cents today. SIA was down 29 cents on 9 February, up 34 cents on 10 February and down 17 cents today. UOL was even more spectacular, up 3 cents, up 9 cents, up 18 cents, up 38 cents and came crashing down 42 cents today. You can see the pattern for DBS and UOB.

To put in perspective, a 42 cents drop translates to a loss of $420 for a 1,000 units of UOL, in a single day. Who can play in this kind of market? Who are the gainers and who are the losers?

At the end of one week, the changes in the share prices from the start to the end are shown in the table below.

Stock 5-Feb 12-Feb Change
Comfort Delgro 2.97 2.98 0.01
DBS 19.42 19.35 -0.07
Keppel Corp 8.86 8.61 -0.25
SIA 12.16 12.03 -0.13
UOB 23.40 23.40 0.00
UOL 7.22 7.48 0.26

Some stocks remained nearly the same as at the start, for example, Comfort Delgro, DBS, UOB. Some times, no action by investors can be a strategy during this volatile period (provided there is no change in the fundamentals of the company).

Copyright © 2015, 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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