Wednesday, April 22, 2009

STI Information

Read an article published by DBS Group Research ( This was around the time BEFORE the run up). Here are certain graphs that I feel is a good to know..

  • This picture show how events have been pushing the index in certain directions. This will tell what kind of information has a greater impact on the index and hence general market direction.

  • Year on year (YOY) Change. This tells us the growth/recession rates of Singapore. Looks like we are at the worst YOY change so far..

  • Price to Book value. This show the prices that the STI stocks are trading to their book value. The center line shows the mean value, the outer 2 lines shows a standard deviation of 1. Currently we are way way low of the mean, and its even below 1! meaning the price of the stock is BELOW its book value.

  • Forward Price to earning ratio (PE). This show's the expectation of the Singapore market. Now it is low, meaning the price of the stock is just a few times of its earnings => high potential growth. High PE is usually associated with strong good companies, as the their earning are thought to be stable, hence people do not mind paying a higher price for a small amount of earnings. So in our low PE case, it sort of implies lost of faith in the Singapore economy.

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