Black October for SGX stocks
On 11 October 2018, Wall Street ripped the world apart with Dow Jones plunging by 832 points. Local stock market index, Straits Times Index (STI) took the cue and fell by 84 points. The sharp decline marked the sixth consecutive day of losses for local stock market. Overall, it was a sea of red for SGX stocks.
The chaos in the market came on the back of new legislation by Monetary Authority of Singapore to report short selling activities. The move is aimed at reducing significant market disorders and improve transparency. Effective 1 October 2018, short sellers are not only required to disclose to SGX their short sell orders, but also to MAS if they hit the short sale threshold.
Whether the new policy would be effective in curbing the big boys’ movements remain to be seen. But I reckon the data collated would be helpful in allowing the authorities to do data analytics and make timely interventions during market chaos.
STI down syndrome
Since the start of October, STI has dropped by 200 points. At the rate of decline, STI appears to be on course to retreat below the support level of 3000 level. Is it the right time …
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