SINGAPORE – It was one other unstable week for US fairness markets as fears of potential inflation, stubbornly excessive US joblessness and an uneven restoration clashed with hopes of an accelerated vaccine roll-out, sturdy retail gross sales and extra fiscal stimulus.
Tech shares retreated amid considerations that many tech names are buying and selling at nose-bleed-level valuations.
In the meantime, a deep freeze rolling through Texas and the central United States has knocked out energy, wreaked havoc on oil and gasoline manufacturing, slowed the vaccine roll-out and stirred up fears of financial fallout.
The Dow Jones index ended the holiday-shortened week at 31,494, down barely from its file a few days earlier at 31,613.02, whereas the broader S&P index closed at 3,906.71, down from its peak at 3,934.83. The tech-heavy Nasdaq bore the brunt of the slide to finish at 13,874.46 for the week, down from 14,162.87 earlier within the week.
In Singapore, the Budget statement had little impression on market sentiment, with the Straits Instances Index taking its cue from Wall Road to finish at 2,880.64 factors, down 44.84 factors for the week.
A lot of the curiosity continued to be on rotational play on second-liners.
Earnings and restoration are proving to be a key driver of efficiency, with Thomson Medical gaining 27.9 per cent final week after reporting internet revenue of $9.7 million for its first half. Sri Trang Agro-Trade gained 41 per cent after chalking up 9.5 billion baht (S$420 million) in full-year revenue. In the meantime, Oceanus remained within the highlight because it ended at a 52-week excessive at 7.5 cents.
There was a sigh of reduction that the Price range didn’t have the broadly anticipated property cooling measures. Nonetheless, analysts level out that such measures have usually come “off-budget”.
Any such “cooling” measures will hit the property and banking shares severely.
OCBC Financial institution and UOB will announce their outcomes on Feb 24 and 25 respectively. Each are anticipated to report decrease revenue development, no because of a squeeze on internet curiosity margins.
Going ahead, anticipate a continuation of the sample of rotational performs targeted on situational shares, particularly second-liners and penny performs.
The native market will take its cue from the US, which in flip will react to the massive information dump coming this week. These embrace house gross sales, GDP, sturdy items orders, inflation and others. Count on extra market volatility forward.
When you have conviction in your portfolio, stay invested. A examine launched final week by the UBC Sauder Faculty of Enterprise discovered that those that attempt to time the market are usually not solely getting decrease returns, however are assuming extra danger as effectively. Moderately, buyers who purchase and maintain are inclined to rake in larger returns, in accordance with the examine titled The Volatility Of Inventory Investor Returns.
This week might be one of many greatest earnings weeks for the 12 months on the Singapore Trade. Apart from the 2 banks, the likes of Wilmar, Sembcorp Industries, CapitaLand, Enterprise, UOL Group and Metropolis Developments may even be reporting outcomes.