The third quarter of 2018 has been a struggle as the global market is plagued with escalating tit-for-tat trade dispute between the two economic powerhouses, United States and China. And just this week, the US Federal Reserve has raised the interest rates by 25 basis points, bringing it to 2.25%.
In the local context, Dairy Farm International has replaced Starhub as STI constituent with effect from 24 Sept. The STI Index has tested its new low in the third quarter of the year. Since its closing at 3277.43 in the beginning of July, the index has been bounded within a range of 3176 to 3347 before proceeding on a declining trend to 52-week low at 3102.73 in the mid of Sept. Subsequently, it has inched upwards to end the month at 3257.05. Overall, the STI has recorded a drop of 0.62% for the quarter.
One the other hand, the SGX S-REIT 20 Index, which measures the performance of the 20 largest and highly traded REITs listed on the local bourse, has seen some recovery from 1193.856 in July to 1235.959 in Sept, with an increment of 3.53%.
Portfolio
It has been an monotonous quarter for me due to the lack of capital injection and I have mostly been watching the market from the side. This probably also explains why there hasn't been much analysis and review of specific stock.
Despite so, the portfolio value has climbed gradually to the $78,000 mark in Sept. Against the backdrop of STI ETF's YTD time-weighted return of -1.18%, the portfolio has returned 2.35%.
Perhaps the most exciting episode of this quarter is the recent general offer of S$2.06 by two of M1's significant shareholders, namely Keppel Corp. and SPH for its remaining shares. This offer also comes during a time of uncertainty for the telecom industry with the upcoming launch of the 4th player, TPG Telecom later this year. The ball is now in the court of Malaysia's Axiata Group Bhd, the largest shareholder with a 28.69% stake.
Personally, I am vested in M1, albeit not a significant exposure. At this stage, I am not in a frenzy to sell as I'm inclined to think that there's still much value to be unlocked for M1 and will wait out for further development on the general offer.
Personally, I am vested in M1, albeit not a significant exposure. At this stage, I am not in a frenzy to sell as I'm inclined to think that there's still much value to be unlocked for M1 and will wait out for further development on the general offer.
Dividend
The 3rd quarter saw the highest dividend collected so far, mainly contributed by the collection in the month of August. However, there is still much for me to work on if I were to reach my personal goal of $500 dividend income per month in 3 years time. Currently, my progress bar is only at 22%.
With the uncertainty revolving around the global trade tension and the recent rising interest rate environment, I am keeping a keen lookout for any undervalued stocks that may align with my long-term goal.
With the uncertainty revolving around the global trade tension and the recent rising interest rate environment, I am keeping a keen lookout for any undervalued stocks that may align with my long-term goal.
Total dividend collected: $1,474.01
Average dividend/month: $112.83
*Exchange Rate
1 EUR : 1.5925 SGD
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2 comments
Congrats on your M1.
ReplyDeleteYour portfolio has almost doubled from the start of the year, that's crazy!
Hi B,
DeleteThanks for dropping by! Must say i have been an avid reader of your site. =)
Congrats on your M1 too! That's really a sizeable percentage of your portfolio with a sweet entry price. Mine has been too high to profit from the general offer.
The increment in the portfolio value has mainly derived from capital injection since the start of the year. Probably still have much to learn on stock-picking from you in order to increase its value based on capital gains.