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Shares Investment: Basking In The Success Of Its 15th Anniversary Milestone
In the Spotlight | 27 August 2010
By: Louis Kent Lee
Articles (199) Profile

The adage of good things in life is worth waiting for certainly held true on 14 August 2010. It was the day when Shares Investment celebrated its 15th anniversary and held its first large-scale seminar at the Suntec Convention Centre. Despite the fact that doors were only scheduled to open at 1pm, participants were already seen hanging around the seminar hall at as early as 11am.

The half-day event saw Frank Xu from CMC Markets and Shares Investment’s renowned columnists, Professor Chan Yan Chong and Gabriel Gan sharing their invaluable insights about the market. Hosted by MediaCorp DJ Wong Lee Jeng, the seminar kick started with Frank talking about technicalities of the market. He proceeded to talk about the “science of technical analysis” and the different indicators that could aid investors in judging market sentiments and thereby taking direction from there on.

Seminar held at Suntec Convention
Seminar held at Suntec Convention

Two Sides Of A Coin
Amid a still negatively influenced market, the 600-strong audience paid keen attention to what Professor Chan and Gabriel offered. It is a benign fact that China, the biggest debt buyer of US, literally scooped up most of US debt instruments during the financial crisis not too long ago. Professor Chan pointed that it will soon reach a state where debt buyers like China, may not have enough capacity to purchase such debts anymore, in the event of another sub prime crisis.

He then went on and talked about the property market boom in China and Singapore. With regards to the local property market scene, he mentioned that prices of new high-end properties would continue to be more expensive due to factors such as inflation and the ever-increasing demand. He also noted that the segregation between the parities of HDB prices and that of high-end properties would continue to widen. On a lighter note, he said the impending US election is expected to stimulate and levitate the economy, and provided views on how to take advantage when such situations happen.

However, there are always two sides to an equation and this is more so for the stock markets. Reiterating his previous points a few months back, Gabriel mentioned about the “not so optimistic” mid term view he held about the market. He pointed out that the local market has generally underperformed for the month of August since 1999 – 2009, with only two years out of eleven that the markets were actually trading positively. Pertinent to the August sentiment, the recent dips might also be attributable to the “Sell on News” get go because of the not so fantastic half year result releases by most companies.

Warning Levels
Despite Singapore’s impressive growth rate of 17.9%, he felt that the wider spectrum of economic woes such as US high unemployment rate, China’s waning momentum and the Eurozone crisis aftermath continue to pose threats to the vulnerability of Singapore’s market. The move by Federal Reserve’s Chairman Ben Bernake earlier, to reinvest principal payments on mortgage holdings into long-term Treasury securities confused many market watchers as many couldn’t phantom the rationale of such move. Gabriel expressed his cautionary plight of such decision and noted that the two biggest economies in Asia, China and Japan have sadly been dragged into the bear market.

Participants perked up their ears even more when he mentioned the different levels to take note of for the various market indices for the medium term.

According to him, cautionary bells should be ringing if the Dow falls below 10,000 points and the bear zone will be confirmed when it falls below 9,500 points. Notably for the Hang Seng index, the alarm bells level is set at 21,000 points and confirmation of bearish zone bar is set at 500 points. Lastly, for the Straits Time Index, a buffer of about 300 points or so will be what denotes a bear zone for the local equity bellwether, which is set in place at 2600 points and below.

The entire event was wrapped up with an interactive Question and Answer session in which Professor Chan, Gabriel and Frank took turns to answer questions fielded by the audiences about which major banks stocks to buy, what sectors to look out for and such. When the event finally ended, crowds of audiences could still be seen clamoring Shares Investment’s booth signing up additional subscriptions for its different platforms. The enthusiasm and positive feedback received for this event brought smiles to the faces of the organisers and this undoubtedly marked a significant milestone for Shares Investment.

Louis is a qualified accountant with the ACCA, and is the Research Editor at Shares Investment magazine.

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