Singapore Stock Market This Week

The past week we saw the STI drop back below the 3000 level. The price of crude oil and other commodities slumped this week as well and the results from some blue chips being dismal. A Fed rate hike is still on the cards, which basically sums up a pretty miserable picture.

(Image source: wikipedia.org)

Some of the blue chips have been able to report earnings growth, such as DBS, Singtel and Comfortdelgro, but others such as Genting Singapore and Noble have suffered a large decrease in their profits. The further slump in oil prices also doesn't bode well for companies such as Keppel Corp and Sembcorp Marine, which work with the oil and gas sector.

The drop in commodities prices is possibly due to the slow down in China, which reduces the demand of different commodities while global stockpiles of oil have increased. The decrease in demand for commodities may even be able to affect other companies in other industries, such as those that transport these resources, process these resources, etc. On the other hand, it should be beneficial to consumers of these raw materials such as manufacturers who now have to pay less for their raw materials while being able to sell their finished goods at the same prices (unless competition drives these prices back down again)

I guess that's all for a short summary of the Singapore stock market for the past week, looking towards the new week, the market may still be jittery and I'm still waiting for a good opportunity to enter the market should it drop further.

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