This month marks the end of the first half of the year. Due to the surprise in the outcome of the European meetings where loans from IMF is not longer given to the government of the European countries before being issue to the troubled banks, as this results in higher debt burden for the government. Instead, loans will be given directly to the banks. This cheered the markets and in the last few trading days in June, bringing the Straits Times Index to above 2,900 levels.
This brings good news to my portfolio as the optimism pushed the value of my portfolio up by approximately 37%. Top performers that helped to increase the amount of unrealized profits were ST Engineering, which rose by 5.0%, CapitaMall Trust, which rose by 5.2%, Parkwaylife Reit, which rose by 3.9% and SingPost, which rose by 3.4%. Another counter that was worth mentioning is SMRT, which rose by 4.6% to minimize the losses that I suffered for this counter.
As STI heads towards the 3,000 level, I will have to make plans to reposition my portfolio. I will sell my holdings in Mapletree Logistic Trust if it hits SGD 1.00 per share, as that is my target price and $1.00 is the 52-week high for the counter. I believe that realizing my profits for this counter when this share price is reached will be a positive move after holding it for more than 2 years. If it does not reach SGD 1.00 per share, then I will continue to hold on to it, as Mapletree Logistic Trust has been a great dividend stock and will be a good stock to hold on for future dividends.
In addition, when STI hits 3,000 or when the share price of CapitaMalls Trust hits SGD 2.00 per share, whichever earlier, I will also sell of my holdings in CapitaMalls Trust. This counter has been a good defensive play, as it generates decent dividends despite its volatility. However, I believe that it is time for me to realize some profits to prepare myself for the upcoming mega IPO of Integrated Healthcare Holdings (IHH), which comprises of mega hospitals in Malaysia, Singapore, Turkey and India. Due to the limited number of healthcare counters, I believe that this will do well as healthcare stocks are usually defensive and valueadd.
I believe that these divesting moves should be a positive one, and when opportunity arises, I will continue to look out for other dividend generating counters, as selling off these two counters will mean a huge decrease in my dividend income.
My Current Portfolio:
Lesson learnt: Although I have been telling myself to hold on to winners till the target price has been reached, while sell off the losers when the cut loss point has been breached, I still lacked the discipline to do that, causing myself to earn decent profits, but suffer massive losses, which tend to erase accumulated profits. I need to learn to stick to the plan and always remind myself.