Last week financial headlines were either dominated by the impending local election or the worsening COVID-19 situation in US. The latter is spooking investors so much so that Dow Jones dropped 700 points on Friday alone.
The local STI was trading within a very tight range throughout the week, and clearly losing the steam to surge further upwards given the COVID-19 concerns. It is likely that STI will mirror Dow Jones and fall come Monday 29-Jun-2020.
Reflecting on my trading activities last week, they were mainly to continue to buy/add more of my favourites – Suntec Reit and Mapletree Commercial Trust to my portfolio after they had dropped ~ 10% from recent their highs.
They were small nibbles. I am holding back because I feel that if the COVID-19 situation in US doesn’t improve, their share prices will drop further and provide an opportunity for me to accumulate at even lower price. If the late March COVID-19 impact is a reference, we may see another 20% drop from current level.
But nobody can predict the future.
These are well run companies and I believe they will survive the current COVID-19 challenges. For my favourite companies, which are all dividend distributing companies and I feel are well run, I tend to accumulate a bit of them from time to time.
Some of you had asked, what are the companies on top of my watchlist this week?
Well, they are: (and they are in no order of preferences)
- Dairy Farm
They had all come off their recent highs lately – actually more than what I expected.
I own the shares of these companies currently but if their share prices fall further this week, I would be tempted to accumulate more shares for long term investment and to build up passive income for the future.
Have a great investment week ahead.