These 4 Singapore stock sectors never recovered

If you thought STI was bad, look at these sectors

Singapore Straits Times Index is down nearly 30% from its 2015 high. It is in bear market territory but if one thinks the correction is bad, one has to think again. The correction is too fast but not nearly bad enough. There are 4 sectors that took near fatal body blows and has never recovered from the last crisis.

  • FST Basic Materials (down >90% from 2008 pre-Subprime high)
  • FST China Top (down >40% from 2008 pre-Subprime high)
  • FST Maritime (down >80% from 2008 pre-Subprime high)
  • FST Technology (down >95% from 2000 Tech Bubble high)
FST Basic Materials monthly chart

FST Basic Materials monthly chart

FST Maritime monthly chart

FST Maritime monthly chart

FST Technology monthly chart

FST Technology monthly chart

FST China Top monthly chart

FST China Top monthly chart

And then here is a snapshot of how the others are doing. It is easy to just look at STI top line performance from 2009 to early 2015 and declare a booming stock market and economy and when those that are so ‘no eyes to see’ are just there with their divergence and cognitive dissonance waiting to be discovered.

To put it another way, it is easy to paint a healthy picture of the stock market if one limits oneself to looking at Straits Times Index. After all, it covers only 30 big caps. But when one looks at sub-indices, entire sectors are ‘dying’.

Snapshot Singapore subindices performance on 20 Jan 2016

Snapshot Singapore subindices performance on 20 Jan 2016

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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  1. By Wern Farrago

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