Day's off for me today. As I settle down for the long weekend, I'm at my laptop thinking about what has happened in the market during the week. Yes, we may ask.....what happened???
As most of us may know, the Chinese Stock Market plunged more than 6% yesterday. As I'm watching CNBC, I'm also seeing a lower pre-opening price for most of the Chinese stocks. Pundits are gunning for a 3% rebound, so let's see where that heads.
What does the above Chinese market sell-off spell for the Singapore stock market? Inadvertently, there is a similar spooking of the market. Most of the stocks in my portfolio (barring Raffles Medical) are trading mostly downwards this morning.
In the past, whatever that we have witnessed would have similarly spooked me and I may have just closed my laptop and just avoided the market with a ten foot pole. However, as my investment maturity grew (that was of course due to witnessing the 2008 GFC, Fed taper tantrum, Oil shocks, etc) I begin to look at this period as a great opportunity to invest in the stocks that I like.
This brings me back to my previous post whereby I wrote at length about Singtel. The current price of $4.09 does look extremely attractive and I would probably add another lot if the price hovers around those levels for the next couple of weeks. We'll see.
OCBC Bank does look interesting as well at its current price of $10.14. It has fallen quite substantially below my average cost of $10.34 for my existing holdings so probably this is an area that I may be seeking to increase my holdings. You may refer to my current portfolio (in my previous post) for a guidance on what stocks that I'm 'focussing' on.
To reiterate my thoughts for the market today. What goes up, does have to come down. The Chinese market has been red-hot and the pull-back was as inevitable as ice melting on a hot bonnet of a black car in a 33 degrees day in Singapore. However, what this does is also present us opportunities to invest in the Singaporean market with bargain opportunities galore.
I hope you can find your set of bargain opportunities as well.
Signing Off
Transitioning Stock Investor
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