This report by Fundsupermart (dated 24 Nov, 2010) argued for why the stock market rally in Singapore is not yet over.
1. The average bull run in Singapore has lasted about 900 days, and yielded 178% increase. Currently, our local bull run is 700 days old, and has increased about 130%
2. For STI to be stretched, its P/B ratio needs to be 2.12. At Nov 2010 level of 3300, its P/B is only 1.76, still a healthy level.
3. The stock market usually breaks its historical high on its way before its bull run comes to an end.
4. It estimates STI needs to reach at least 3600 - 4000 before reaching maturity in bull run.
In short, reiterating the view in my past few articles, that the bull run is not over yet. But then, the end is not really that far away. Could be by the end of this year.
No comments:
Post a Comment