In the month of April 2024, divested Fu Yu at price $0.132 after holding it for almost 3 years. It was acquired in May 2021 under the Strategic section of the Investment Portfolio at $0 cost. With the divest, this resulted in a realized gain of +2.72% with reference to the cost of the Income section. The amount of dividend collected so far was 0.49% with reference to the cost of the Income section. This gave a total realized gain of +3.21% with reference to the cost of the Income section.
Reason for the divesting is not on the bearish perspective of the stock market going forward but a strategic move. Initially, it was an ease to accumulate more quantity at $0 cost but that became more and more challenging for the past 1 to 2 years. As such, it is strategically wise to divest the holding so that the focus could be directed to other more meaningful strategic positions.
Just some food of thoughts for STI to share about. US market has already trading way above 2007 peak. Japan market has also finally move above the 4 decades ago peak 4 and not to mention some other global markets also performing the same. China and Hong Kong markets were underperformance among global markets mainly due to the fundamental issue in China economy which affected Hong Kong. On the other hand, Singapore economy isn't in the bad shape as those of China and Hong Kong and yet STI still way way below 2007 peak. Something isn't right fundamentally for STI, a potential hidden underlying issue that unfortunately nobody knows what it is, I'm afraid.
