June so far has been phenomenal! STI is up 6.5% as of yesterday in just 14 working days. Almost every companies in my portfolio is in the Green. The Banks, Properties, Reits … and best of all, Singtel and UOB for me.
Singtel has climbed from $3 to $3.45 now. UOB is up from $23.50 to $26.32. More than 10% gain for the investors in both companies.
I resisted at first but eventually gave in and started selling both of them into the rally. A 10% gain in just one month was too big a temptation to resist.
Besides, has anything seriously changed? Maybe it’s the commitment by Presidents Trump and Xi to meet. But there is no promises that anything will come out of their meeting. We have seen it before.
Fed is definitely pausing the rise in the interest rate now and may even contemplate reversing the recent increases. But all these are signs that the economy is slowing down. I think if Q2 results was a hint of what to come, Q3 results is not expected to be pretty. Hence, I felt the urge to take some quick profit and rebuild my warchest which I used quite a fair bit in May.
Anyway, besides Singtel and UOB, I also took profit on Keppel and Netlink which have also increased by almost 10%.
I was particularly glad that I was able to trim my exposure in Singtel. As some of you will know, my holding of Singtel was double digit % in my portfolio.
Following these recent sales, it is now marginally below 10%. If Singtel continues to rally, I will probably take the opportunity to sell more. My target is to hold not more than 5% of my portfolio in any company. Singtel is the only exception at this moment. So can’t blame me for the eagerness. 😆
My decision to sell Singtel was also my belief that the issues that it is facing are not going to go away anytime soon. The competition that it faces in many of the emerging countries will continue to be intense. The only good thing is probably the threat of the 4th telco in Singapore is smaller than originally thought. So, maybe Keppel and SPH had got M1 on the cheap 😊.
It is anyone’s guess if SingTel can maintain the dividends next year. At the moment, the dividend yield looks very attractive and this is one big downside that I had chosen to accept by selling now and forgoing the dividend. Well, as in many things in life, you often can’t have the cake and eat it.
I am also forgoing UOB’s dividend by selling now and I hope it is a right decision.
Let’s see how things goes. I don’t have a crystal ball or want to pretend that I have one. I could very well be wrong but it’s ok, I took deliberate decision to lower my risk exposure.
Honestly, my investment decision is ruled more by managing risk level and targeting a certain level of returns nowadays … 5% yield is good for me … a definite sign of ageing ???? Haha 😂
Have a great weekend folks.