The past few days has seen the Dow Jones industrial index dropping 6 percent over 4 days. The worst intra - day trade was seen on the 6th of May thursday where the index dropped 10% in a single day trade and then recovered back to a 3% over all loss thanks to a technical glitch.
The market condition in SGX is still fairly weathered, although we seen a drop of around 10% at the same time since the index hit a 14 mths high on mid April. This wave of bearishness were caused by panick selling as a result of the debt crisis in the Europe Region. Additionally, China's intention to increase their central bank's reserve ratio for the third time in 2010 only aggravates the whole situation. This coming monday we shall will see the policy being implemented and nonetheless there will be another wave of sell off in stocks.
However, do look out for stocks dumping to a 2010 low as such stocks will be consider a bargain.
Shipping and Engineering Stocks to look out for bargain hunting this coming week:
Current/Potential after July
Rotary 1.01 / 1.3
Ezra 1.93 / 2.3
Midas 0.97 / 1.1
NOL 1.97 / 2.4
Yangzijiang 1.31 / 1.8
Cosco 1.55 / 2.0
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