STI fell 40 points today.
There are many possible reasons:
1.USD sgd hits 1.40. The date gets nearer for Feds to increase interest rates, which translates to a change in stock valuation. However, it gives the Feds much 'headache' and less reason to increase interest rates when USD is strong.
2. Hang Seng and Shanghai afternoon sessions were down. STI's characteristics (I have seen so far) will fall much more than any 'green' day.
3. Normally after SG holidays, most take profits as trading volume is weak.
4. Devaluation of China Yuan on Tuesday was a done with a purpose of market reform. But it may be deemed as a sign of economic weakness.
China is a huge consumer of commodities and if the move is interpreted as a sign of economic weakness, there will be ripple effects. On Tuesday every currency in the region weakened against the US dollar — those of New Zealand, Taiwan, South Korea, Singapore and Australia fell 1 per cent or more
It's easy to come up with theories of possibilities after market actions, after market trading hours.
Certainly post mortem reports cannot help to make money after the dust has been settled.
To win money in trading, or investing, it is the foresight that is valuable, and without a doubt, priceless too.
