STI ends week up 1% despite Covid-19 worries

STI ends week up 1% despite Covid-19 worries

Wary merchants on guard over extra unhealthy information about coronavirus infections despatched native shares down yesterday, however the market nonetheless managed to complete the week within the black.

The Straits Times Index (STI) fell 30.83 factors or 1.16 per cent to 2,634.83 as traders grew extra cautious {that a} second wave of Covid-19 infections might derail the worldwide rebound.

Losers outnumbered gainers 220 to 205, with 1.eight billion shares price $2.31 billion traded.

Yesterday’s setback was not sufficient to wipe out earlier positive aspects, permitting the STI to finish the week up 0.99 per cent or 25.eight factors.

Fintech platform iFAST Corp was the highest gainer yesterday, surging 13.91 per cent to $1.31 after it confirmed that it’s one among 9 candidates shortlisted for a digital wholesale financial institution licence by the Singapore authorities. Up to 3 such licences are up for grabs.

Top loser Jardine Matheson fell 2.four per cent to US$43.49.

UOB Kay Hian analysis head Adrian Loh famous this week that the rally within the STI has fizzled, however the index is unlikely to plumb new depths within the close to time period.

“With subdued near-term inflation and aggressive monetary policies globally, interest rates will likely remain very low for an extended period,” he mentioned.

“This may drive market multiples higher, despite deteriorating earnings estimates. We continue to believe that equities will benefit relative to cash or bonds.”

While bargain-hunting within the blue-chip area has cooled, penny-stock punting was as energetic as ever this week. Top lively Rex International rose 2.22 per cent to 18.four cents on quantity of 94.7 million, whereas metal fabricator Yongnam added 15.48 per cent to 9.7 cents.

Regional markets mirrored cautious optimism. The Hang Seng rose 0.73 per cent, the KLSE added 0.16 per cent, the Nikkei climbed 0.55 per cent whereas the Shanghai Composite superior 0.96 per cent.

The Kospi completed 0.37 per cent larger and the S&P/ASX 200 index ended up 0.1 per cent.

On the entire, markets have been sideswiped this week on contemporary contagion issues, prompting some traders to mood their optimism about how rapidly the worldwide financial system can recuperate from Covid-19.

“The market is looking for its next big impulse,” mentioned Mr Chuck Carlson, chief govt at Horizon Investment Services within the United States. “There are a lot of impulses in the market for investors to weigh, sift through and take into account to figure out the next direction.”

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