Oil and gas companies and commodities companies had experienced a lower prices on their commodities. This may slow down loan growth in banks and also companies's ability to pay up.
Property stocks like GLP, Capitaland and HK Land, have dropped due to the weakening of the Chinese currency, with fears that a conversion back to Singapore currency will reflect lower profits.
Cargo volumes dropped, indicating a slowdown in overall economic activity. Companies with lesser profits result in their ability to pay back loans. This factor could lead to a slowdown in bank earnings.
The launch of Singapore bonds on 1 October 2015 will also reduce the amount of cash deposits held in banks as close to about $1 billion a month of Singapore bonds will be issued out in October.
Amid volatile markets and a possible correction, these 2 stocks provide safety in volatile markets:
- M1
- Q&M Dental
- Oversold
- 6% dividend yield at current price
- Offer cheaper plan to scoop up bottom markets to scare off 4th telco
Q&M Dental
- Aggressively acquiring clinics in Singapore, Malaysia and China
- Closest to becoming monopoly in Singapore dental industry
- price to earnings growth stood at 0.3(PEG is undervalued if less than 1) after Q2 2015 results
