Singtel Hits $4.59: Why I Am NOT Buying This Rally (SGX Stock News 16 Dec) š¦ EP1319
The STI is sleeping at 4,589, but under the hood, a massive rotation in dividend quality is punishing the passive investor.
The Straits Times Index (STI) closed yesterday at 4,589.17, nudging up a microscopic 0.06%. If you only look at the index, you might think nothing is happening. You would be wrong.
Right now, we are witnessing a tale of two markets in Singapore. On one side, we have āOld Guardā blue chips like Singtel and ST Engineering suddenly flushing shareholders with cash derived from asset salesāa strategy known as āValue Realisation.ā On the other side, we have the once-reliable REITs, specifically Mapletree Logistics Trust (MLT), getting hammered by the twin demons of foreign exchange depreciation and rising costs.
The question for your portfolio today is simple: Are you holding the companies that are paying you special dividends, or the ones that are cutting your pay?
