Singapore Property Cooling Measures July 2018 – banks, property stocks and their prices

Singapore Property Cooling Measures July 2018

Singapore property cooling measures

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:

In a report on Singapore bank stocks, OCBC Investment Research's Carmen Lee noted that while the latest measures will not hurt the current mortgage portfolio for the three banks, new loans growth could come off in line with the slowdown in property transactions in the coming quarters. She added: "We are still fairly positive about the other revenue contributors for the banks, but we expect this headwind to be a dampener on short term share price performance. For longer term investors, short term price weakness could present a good opportunity to gradually buy into banking stocks."

Lifted from Business Times article Tweet

Strait Times Index (STI)

STI
Source: tradingview.com

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.

Bank Stocks - DBS

DBS
Source: tradingview.com

Banking stocks – DBS

Still uptrend on a longer term. Key support 22.85. 

Bank Stocks - UOB

Source: tradingview.com

Banking stocks – UOB

Still uptrend on a longer term. Key support 22.54

Bank Stocks - OCBC

Source: tradingview.com

Banking stocks – OCBC

Weakest of all 3 banks. Key support 10.80 and 8.35.

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Binni Ong
Binni Ong

Forex Data Scientist & Systems Expert, entreprenuer and a mother of two wonderful children. Binni Ong just loves patterns/numbers and developed many mathematical-base automated trading systems. She founded TerraSeeds Market Technician Pte Ltd andonlineforexmaster.com. She was also invited by exchanges, brokerages and banks to speak in many investment seminars and panels. She has a Masters degree from NTU, Singapore.   Follow Binni in Twitter | Why Students like Master Forex Course | Trade Review on Tflow® Trades & Trade Performances| Find me on Google+

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