Market review Jan 11

STI 3200 is in sight now

STI close the week at 3,287.34. This is despite that Fed chairman has declared that they are willing to cut interest rate to boost the economy. The further write down speculation on Citigroup and Merrill Lynch has also resurfaced. I would say 3200 is a possible now. Sit tight and I think that's a good entry point to add a small position, but it depends on individual risk appetite. On the other hand, I think the best approach is to ignore the market and prepare for Chinese New Year.

The revamped STI

After the revamp, STI has became a blue chip index. It consists of 30 blue chips on the SGX board. If you are not good at stock picking, I think buying an ETF on the STI which base on these 30 companies would be a good idea. ETF is a low cost way to let stock compounding your wealth.

JEL Corp Scandal

After KPMG investigation, JEL corp is involved in account manipulation. The figures have been inflated. This is a timely reminder to all of us that no matter how great the company is, don't put all your money in it. I still can recall when they appear in the news, they project themselves as shareholder friendly and adopted good corporate governance.

We saw what happen at ACCS and CAO, now we see it again. It would definitely happen again! When people are high up there, they would try all means to maintain the social status and aim for more glory.

Technics Oil & Gas promotion to main board

The company has already obtained the approval to move from Catalist board to the main board. This proves that they managed to grow the business and profit to meet the target of main board. Although the recent project delay has some what dragged the company down. I am cautiously optimistic on the business outlook and would keen to take a position if they managed to engineer a turn around.