On 5 Jul 2018, Singapore government announced higher Additional Buyer’s Stamp Duty (ABSD) rates and tightening load to value (LTV) limits on residential property purchases.
This sent Singapore banks and property stocks tumbling on 6 July 2018 trading.
It is not as if we could predict this movement, but my colleague did caution that property stock like Capitaland was not looking good on an article published on 6 March 2018 and 2 July 2018. Read what he wrote.
My interview in Chinese Newspaper
I was interviewed today by Shin Min Daily offering my views. Will post summary here later.
But let me share my insights on current Strait Times Index (STI) and the bank stocks that were affected.
Bank stocks were rising very well and still on uptrend. In this article, I like to highlight important price levels.
I’m lifting off what I read from a Business Times article on 6 July 2018:
Strait Times Index
Fell near to 13% from high. This is the first sign and also a confirmation that STI is heading into a bear market.
Banking stocks – DBS
Still uptrend on a longer term. Key support 22.85.
Banking stocks – UOB
Still uptrend on a longer term. Key support 22.54
Banking stocks – OCBC
Weakest of all 3 banks. Key support 10.80 and 8.35.