Over the past week, decided to continue to load on some counters. The video below shares why and what I bought.
If you prefer to read, here’s my presentation brief.
Why am I buying now?
My SG portfolio has been trending down after hitting a high in January. Especially over the past 2 months, the drop is steeper. I already bought some in May. You can view my previous post on that. And after re-looking at my next 3 years of expenses (till end 2026), I think I can put some money back into the market which in my opinion remains at an attractive level. I have also decided to reduce my holding in Ascendas REIT and HRnetGroup. The former because I simply prefer the other REITs in my portfolio. As for HRnetGroup, I am expecting a weaker 1H results, which is likely to result in a lower interim dividend. Still long term positive about the company though. So if the price really drops after 1H results, I will probably add back.
Besides cash, I also realised that investing in T-bill does not affect CPF stock limit!The stock limit you are seeing on screen is the same amount as what I had after selling SGX and Micro-Mech in May. I was successful with the bidding of T-bill in early June and was glad that after that I still have that amount to invest in stock.
So what did I buy?
I continue to add on both OCBC and UOB. In short, I am positive of their performance this year and probably for 2024 too. I see NIM staying fairly stable going forward. While bank’s lending interest rate might stay the same or decline, the interest that banks are paying for deposits is on the decline too. The latest fixed d for both banks is just 2.7%. Of course, this is a very simplistic of looking at it as the banking business (in fact any business) is a lot more complex. but I think the scale still tip towards good earning in the next 1 to 2 years.
Just could not resists Daiwa House Logistics Trust’s attractive yield and added a bit more. Will keep to this position until I learn more about it from the next few reporting. As for Frasers Centrepoint, it has a proven track record. I believe it is capable to sustain its dividend going forward.
The last counter I bought is The Hour Glass. I have not written a lot about it as the company does not share a lot except for the bi-annual financial reports. I first bought in Aug 2021 when it increased its dividend for a consecutive of 3 years! There was a new interest in luxury mechanical watches. FY2022 is another record year but the company has shared that the negative economic outlook is expected to dampen consumer demand but should continue to be profitable. The second half revenue which included the first 3 months of 2023 saw a flattish revenue and net profit. If the drop in FY2023 is not too drastic (in the teens), then I think they can sustain their 8 cents dividend.
I am not quite done with the buying yet. Still have a bit of spare cash and am likely to add more MLT and Raffles Medical. As for CPF, still waiting for a good price to add back AEM and Micro-Mechanics as I am positive of their long term prospect.