How to benefit from Singapore Budget2015?

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About SGBudget2015

In SGBudget2015, there are a lot of measures that benefit most of the Singaporeans in the Middle and Low Income Tier, in area like Personal Income Tax rebate, Childcare and Exam fee rebate. It also come with scheme that help to lighten financial load of Singaporean that taking care of their parent. The list go on, and you can find ton of information online like https://twitter.com/MOFsg or http://www.straitstimes.com/news/singapore/more-singapore-stories/story/singapore-budget-2015-15-things-cheer-about-20150223.

What will be more important is to analyst the influence of Budget2015 over Singapore Stock Market. We need such information to empower us and assist us on the path of wealth creation. So let’s get started!

Key Influences of SGBudget2015

  • Govt expenditure will continue to increase over the medium to long term, driven by healthcare, public transport & T5.
  • A new Changi Airport Development Fund will be set up, with an initial injection of $3B
  • Temasek to be included in Net Investment Returns framework; add. resources to fund govt expenditures
  • Petrol duty rates for premium and intermediate grade petrol raised by $0.20/litre and $0.15/litre respectively
  • Credit – S’porean aged >= 25 to get initial credit of $500 from 2016 for education & training

As the initial fund for public transportation being locked in, the transport companies SMRT and SBS Transit will be back in spotlight with Lui Tuck Yew announce on the bus asset purchase plans pretty soon. Comfort should also get to be part of the spotlight gang as it not impacted from the come-into-effect increased petrol duty rates, as it uses diesel for its fleet.

As plans for Terminal 5 Airport materializes with an initial injection of $3B new Changi Airport Development Fund, certain construction company and logistic company like Yongnam, CWT and Singpost may have big rally story cocking up and bang up soon.

Scheme Skillsfuture will soon put $500 into education & training account for most of the working Singaporean adults. With this Skillsfuture Fund spill over, Education operators like Raffles Education should enjoy the soak up too.

Previously, Singapore government tap on returns generated on its net assets managed by the Monetary Authority of Singapore (MAS) and GIC, and now Temasek is being listed to served Singapore. Temasek may need to generate safer return, and forcing it to make better investment decision. We can started to consider those companies that Temasek invested in after this NIR framework update.
Update
Do not chase any stock especially when it has rally, instead look for sign of weak supply or higher low, before enter any long position!

 

Disclaimer:
Articles in this blog contained the personal views and opinions of the author and are based solely on his perspectives and/or experiences, except for articles that originated from other sites, shall bear their own disclaimer. They do not represent any form of statements made by any organizations.

The articles are for information only and readers must not misconstrued them as financial advice. The author does not work in the financial industry nor is he a licensed financial adviser authorized to provide financial advisory. And purpose of articles been written in mind for main purpose of knowledge sharing & discussion, never to induce or promote any insider trading or manipulation activities.

Any form of investments carry risk, so readers should engage a licensed financial adviser to assess if they are suitable to invest in such products. The author of this blog will not be liable for any form of damages that may arise from the use of information, products and services directly or indirectly featured or implied in this blog.

Introduction to Supply and Demand

What is Supply and Demand?

Every day stock prices change due to the result of market forces in respect to supply and demand. When more people want to buy a stock (demand) than sell it (supply), then the price moves up (Refer to the green box in the diagram below).

On the other hand, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall(Refer to the red box in the diagram below).

sti-1yearAnd when you have supply and demand been acted out on bigger time frame, you will be presented the overall trend direction. Is it trending up, down or sideway? Below is the chart for STI since 1980 till now. Within the chart, there were a lot of supply and demand (waves) going on. From the chart, it is easy to say that it’s a trending up chart. Reason been the various higher low. We can say that there more buyers than sellers, or the buying strength is more superior than the selling strength. And you as a trader, it important for you to keep a lookout and analyses the strength of each wave. One simple method will be to lookout for a higher low for up trend or lower low for down trend.

Example, look at the black box as below, you can clearly identified a series of higher low and higher high and it looks like it’s a compressed spring waiting to unleash the stored energy within it. Although the probability for a up trend is higher, but it be safer to get in any long position when there is dip and be sure to lookout for a serious supply wave that bleach the previous low.

sti-longerViewDisclaimer:
This article contained the personal views and opinions of the author and are based solely on his perspectives and/or experiences, except for articles that originated from other sites, shall bear their own disclaimer. They do not represent any form of statements made by any organizations.

This article is for information only and readers must not misconstrued them as financial advice. The author does not work in the financial industry nor is he a licensed financial adviser authorized to provide financial advisory. And purpose of article been written in mind for main purpose of knowledge sharing & discussion, never to induce or promote any insider trading or manipulation activities.

Any form of investments carry risk, so readers should engage a licensed financial adviser to assess if they are suitable to invest in such products. The author of this blog will not be liable for any form of damages that may arise from the use of information, products and services directly or indirectly featured or implied in this blog.