By Roger Tan, SIAS Research
The US market experienced another tumble last week as investors sold off their shares after seeing more weak economic data. The S&P 500 fell 5 per cent for the week to end at 1,022 pts, while the Dow Jones closed below the psychological 10,000 pts.
The STI, on the other hand, fell by only 0.3 per cent ‒ a milder correction compared with its US counterparts. Good economic numbers from Singapore mitigated the bearish effects from other markets in the week. However, while the STI did not correct as significantly as the S&P 500, it was as volatile.
This might be a lacklustre week as there is not much informa- tion coming into the market, which will mainly be driven by investors’ emotions this week as investors continue to play the greed and fear game in the market. Use out of the money put warrants to protect your investment for the week.
For individual stocks, we continue to like undervalued stocks such as Osim, Cheung Woh and even China Environment. However, these are long-term investment ideas based on company fundamentals and should not be bought on short- term objectives.
