What is the strongest sector in Singapore?

Today STI falls through 3000 critical support in early trading session but eventually close 1 point above this level. 3000 is an important psychological support that everyone should be looking at as this will determine whether the bear has the power to push through. Prices don't go in one way, and news of middle east unrest should be priced in by now, so there may be some short covering soon. Let's observe!

Turning our attention our topic for discussion: which is the strongest sector during this bearish period? In this case, we use the FTSE indices to facilitate our research. FTSE has partnered with Singapore Press Holding and Singapore Exchange to calculate the STI index, and a series of stock indices for Singapore equity market. FTSE groups similar stocks in the same sector and compute an index for them. Using these indices will allow investors to analyze and compare major capital segments of the Singapore market.

Of all the FTSE stock indices, one stood out. This is the FTSE Oil and Gas. While all other indices are now under their long term MA, this indices is still standing on its support above the 150MA. Relative strength is improving compared to the overall market, and the fundamental macro picture sells a good story to support companies in this industry. Crude oil is approaching USD110 a barrel!!!

So how does one make use of this information to narrow down the counter in their watchlist? It is quite straightforward. Just buy the strongest counter in the strongest industry. But since the overall market is bearish at this moment, it is still wise to hold your purchase till sentiment improves. For information which counters are inside this stock index, you can refer to the following website at: http://www.sharesinv.com/

Note: If you are a fundamental investor, this method might not work for you.