OVERVIEW:
SPDR funds are a family of exchange-traded funds (ETF) traded in US, Europe and Asia Pacific and managed by State Street Global Advisor. SPDR® Sraits Time Index ETF ("STI ETF") is Singapore's first locally created ETF which can be traded like any listed share. It seeks to generate return that closely correspond to the performance of Sraits Time Index ("STI").
HIGHLIGHTS:
[1] Following Shanghai Composite Index closed at 2900 last Friday, it entered Bear market by some definition as 20% downfall occurred. Regional markets have been free falling as well since the beginning of 2016. DOW JONES and S&P 500 were testing two years low points even though outperforming economic data was released.
[2] Impact of global oil glut has been spreading to banks. Market is worrying over potential surge in its non performing loan, thus we saw local bank counters heavily sold down into book value last two weeks.
INVESTMENT THEMES:
[1] Global market has been growing much volatile since Aug 2015. Besides oil price, US rate hike is another concern. It could have been oversold so bargain hunt might repeat as what happened on Oct 2015.
[2] To prevent over exposing into specific sector such as oil related counter, buying into ETF could provide a much balanced allocation of fund. Current STI ETF price represents 3.5% dividend yield. P/E is 10 which has fallen into attractive range.
PRICE TREND:
STI has been shedding 9% since 2016. 2520 to 2631 are supporting lines formed in STI over past 5 years. Shall the support holds firm, bargain hunting window is opened.
*** Note: Same counter has been mentioned in Aug[5] ***
No comments:
Post a Comment