Wednesday, February 8, 2012

Food for Thought


The STI has rebounded by almost 10% since the start of the year, a bull run that was probably overdue. As we savour the current period of market boom, it might be worthwhile to direct your attention to the STI monthly statistics on turnover of the market. 

The graph below shows value/share of each of the key sectors over a period of 3 months. 

Are these what the market is trying to tell us about price reflecting the performance, market psychology, fundamentals of each sector? Utilities has been increasing steadily in value/share transacted over the last three month. Undervalued but up and coming proposition? As expected, consumer services, financials and oil and gas are sectors with high valuations. Could this graph yield us more insights to changes in the stock market to come?

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