Friday, September 21, 2018

SGX, KepCorp and STI ETF

If you are wondering what counters would be nice to consider, you may want to monitor these few counters . Not a call to buy or sell.Please do your own due diligence.


SGX
Dividend power! Dividend of 15 cents, ex-dividend on 26th Sept 2018. Looking good to ramp up further towards 7.60 !



SGX declared Final dividend of 15 cents ,increased by 2 cents from 13 cents . I think shareholders would be happy to boost their dividend income.

Likely to continue to head higher!

Going forward, the company will be giving out quarterly dividend of 7.5 cents for each quarter which is adding up to a total of 30 cents yearly dividend. A nice dividend counter to put in on our watchlist or portfolio.



KepCorp
On 20th Sept 2018, Keppel Corp has a very nice run-away Gap up candlestick reflected on the chart. Couple with rather high and impressive volume and closed well at 6.80 , this is rather bullish!

The next day it has again started with another Gap up candlestick and close very well at 7.03. 
The volume bar is extremely huge. 
It might be good for it to take a short break before continue to rise further.
As can be seen, immediately resistance is at 7.07 level.

Short term wise, I think it may likely move up to retest $7.20 with extension to $7.40 level.


Trade/invest base on your own decision.

STI ETF

This simple strategy is to invest in a low cost ETF( Exchange Traded Fund)  such as the STI ETF (ES3.SI) or NIKKO AM STI ETF(G3B.SI) .

This method of operation is to buy into STI ETF whenever it is in an oversold condition and to sell off and take profits whenever it is in an overbought condition. 
For example, one may use the  indicator such as the Relative Strength Index (RSI) to determine overbought ( above 70 ) or oversold condition( below 30).

One may plan to buy and selling of units in several batches whenever in oversold or overbought conditions in order to get the best average price.


For example you may plan to buy in at different interval or whenever the Oversold situation happen .

As for younger folks who just started out working and does not have enough cashflows and savings , one may start to spread out the different batch of buying or applying the Dollar-cost-averaging method by investing $1000 at 6-8 different batches that would be able to achieve  lower average costs per unit. 

the example are as follows:-

1. When the index price is $2.00, your $1000 will be able to buy 500 shares.
2. When the index price is $2.50, your $1000 will be able to buy 400 shares
3. When the index price is $2.90, your $1000 will be able to buy 344 shares
4. When the index price is $1.66, your $1000 will be able to buy 625 shares
5. When the index price is $3.00, your $1000 will be able to buy 333 shares
6. When the index price is $3.20, your $1000 will be able to buy 312 shares
7. When the index price is $3.50, your $1000 will be able to buy 285 shares

Total = $7000 / 2799 shares = $ 2.50 average cost per unit.


By using this method, you will be able to make a profit once the stock market rises above this low average price.





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