The Singapore Stock Exchange (SG) has been in a downswing lately and has also seen some volatility. This doesn't mean there is a lack of profitable opportunities for investors - it simply means that they need to understand how to anticipate and profit from stock volatility.
That entails gaining an understanding of what is driving prices, so that the investor has an insight into why a stock's price is rising or falling.
Financial results always causes volatility
One of the key drivers of volatility in a company's stock is when the company reports its financial results. Some companies report quarterly, others half-yearly or annually. Companies often have surprises in the reported figures - both on the upside and the downside.
All stock exchanges and internet forums generate a lot of discussions and speculations, so before the actual results are announced, prices often move sharply, in reaction to the latest rumour about what the results will show.
Surprisingly, the volatility sometimes continues for a few days after the results are out - this is largely due to portfolio managers adjusting holdings, given the numbers that have actually been reported.
And of course, the market often overreacts, so that a swing in one direction or another is followed a few days later by a swing back in the other direction. Observant investors who are following key Singapore Exchange stocks, can develop a feel for when to buy and sell, to take advantage of this volatility.
August 2017 Financial Results
Property companies are definitely doing well, in fact six out of the ten best performing stocks this year, are real estate stocks. After the government relaxed some development restrictions, analyst are forecasting a continuing rise in real estate stock prices. UOL Group, City Developments and others are leading the charge.
Analysts reports are worth reading
Mergers and Acquisitions (M&A)
