It is the end of the January month and we can already see some turbulence in the market, especially affected by the news of the EM crisis we are having right now. The overall STI index has gone down by 4.42% in this one month alone and it does look like the trend will continue to spread in the February month.
I've listed down a couple of stocks that I am currently keeping a close look on. I may not necessarily buy them in the near term nor is this a call buy for you to follow on. But it may be worthwhile taking note on these stocks as they may provide a longer risk reward horizon.
| Counters | 31-Dec-13 | 30-Jan-14 | % Change |
|---|---|---|---|
| Capitaland | 3.03 | 2.76 | -8.91% |
| Far East H. Trust | 0.84 | 0.785 | -6.55% |
| Croesus Trust | 0.885 | 0.875 | -1.13% |
| Raffles Medical Group | 3.11 | 3.00 | -3.54% |
| DBS | 17.1 | 16.47 | -3.68% |
| Wilmar | 3.42 | 3.12 | -8.77% |
| CapitaRChina | 1.33 | 1.32 | -0.75% |
| STI Index | 3167 | 3027 | -4.42% |
Out of the 7 stocks listed above, Capitaland, FEHT and Wilmar have underperformed the index while the other 4 have performed slightly better.
Capitaland for instance, have fallen almost 9% from Dec due to poor market sentiment from China and the downward pressure coming from the local residence market. Having said that, I am still pretty bullish on the new CEO management as they have indicated a stronger ROE target to meet within the next 5 years.
I am equally bullish on DBS as they have posted a stronger set of results this year as compared to the past. The higher profit means that the same payout has now attributed only 30% of earnings as compared to 38% in previous year so I do expect the management to dish out a higher distribution for FY14.
With most of the stocks now below their moving average, we could see downtrend pressure within the next few months, which would be really interesting if that happens. What about you? Are you looking for any opportunities in the market?
