Tuesday, 4 October 2016

What to do during this period?

What to do during this period?

Ever since the epic Brexit event, STI finally surged above 2,900 points to 2,945 unexpectedly, before coming down to 2,803 in the following month. Subsequently, it has been ranged bound between 2,800 and 2,900.

Those banks, telcos and REITs stocks in 穷小子's watchlists did not have much movements during this period as well. The announcement of delaying the rates hike in September didn't have much impact on the market at all, perhaps all are well within investors' expectations.

The price at current level is not high enough for 穷小子 to take profits, nor low enough for 穷小子 to add more positions. No dividends for September and October. Honestly speaking, this is boring, and 穷小子 did not pay much attention to the market during this period too.

All these may actually become a good time for investors to take a breath and do a review

穷小子 did the following:
  • Re-valuate the valuations of those stocks in the watchlists.
  • Based on the valuations, set the price alerts for each of them.
  • Forecast dividend's yield and set targets for next year

After doing all these, the forecast for next year's dividend yield is pathetic, at a low range of 4%. Seems that telcos and REITs valuations could be more attractive now in order to increase the yield. Especially with M1 at a dividend yield of 6.38% on today's closing price, it could be an eye-catching.
Nonetheless, we must not forget that IDA is gonna make announcements regarding to fourth telco by the end of October, and rates hikes' decision will be made in December. These are the two major factors which will affect these two sectors respectively. Lastly, the much anticipated US President election will be around the corner as well in November.

Apart from all these, STI may continue to stagnant awhile, for at least after Chinese New Year which is Jan next year. Furthermore, the dividend seasons are pretty much over for this year.
These are all the reasons which why 穷小子 has not made his purchased yet. Patience ^^

穷小子 is almost 85% invested, hence this may be his last shot for any good bargains in the market.


  1. Be careful about telcos. Dividend is likely to be cut. Based on UOBKH's amd several other broking houses estimates, M1 and Starhub will trade at 4% and 5% dividend respectively base on the current prices of those 2 telco. To me its not worth buying at current prices and suffer capital losses soon. I am not vested. DYODD.

    1. Hi,
      Thanks for the heads up. I am putting this into considerations before making any purchase too. Injection of the 4th telco is surely something we must be wary of now.
      Already have some holdings in the telcos currently, so 穷小子 is not hurry to jump into more of it at the moment. Thanks.