Things were not smooth sailing this month at all. After the continuous bull run for 2 consecutive months, the time for a breather sets in. The correction and consolidation period was much expected. However, what was unexpected was the gloom and doom that arose in the month. First was the reignition of the Eurozone crisis. This time, it is Ireland that requires a bailout. The IMF and Eurozone immediately approved a bailout loan package for Ireland, but worries still linger as many feared that Spain and Portugal will be the next.
Before the fears from the Eurozone crisis could settle, next came the news of shelling of South Korea by North Korea. The tensions in the Korean Peninsula sparked fears around the globe and stocks around the region slumped. The STI was not spared and selling pressure sets in.
The only change in my portfolio this month is the addition of FJ Benjamin back into my portfolio. Due to the selling pressure, the share price of FJ Benjamin has since corrected by approximately 15%. I believe that this should be a good opportunity for me to snap up some shares of this counter now, as retail play is still profitable in Singapore. Although I did not manage to buy the shares at the lowest price and in the immediate term I am suffering from some paper losses, but I know that it is impossible to time the market and I believe when the macro-environment turns more positive after the fears and worries died down, FJ Benjamin still has its market, especially with the festive seasons just around the corner.
Another issue for the month will be the private placement exercise by Suntec Reit to raise funds for its acquisition for the one-third stake in Marina Bay Financial Center. This exercise has some dilution effect in the near term, hence the share price of Suntec Reit dropped to a 3-month low. However, as the acquisition will boost the DPU by about 1%, hence in the long term, the deal is still beneficial to the shareholders. Hence I will continue to hold on to this counter despite the dilution and collect its dividends to fight inflation.
In conclusion, this month has not been rosy and selling pressures in the market still lingers. My total paper profits has already decreased by about 26% in a single month. As the volatility continues, I hope that with the festive seasons round the corner, the picture will improve and be more rosy next month.
My Current Portfolio:
Lessons learnt: Do not try to time the market. When you have done your homework and researched on a stock, and you think that it is at a reasonable value, just buy and hold on to it. Patience will pay. Do not panic in times of downturn, and stay away from the market if required. This will prevent the often made mistake of buy high and sell low.
