<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Sep 20, 2008
BULLS AND BEARS
</TR><!-- headline one : start --><TR>STI surges 5.8% in 'a day of comebacks'
</TR><!-- headline one : end --><TR>Historic US bailout and initiatives from China lift investor sentiment </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Alvin Foo, Markets Correspondent
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->AFTER suffering through four harrowing days of declines, Singapore's investors yesterday pounced on a triple treat of bright news, powering the badly bruised local market to a whopping 5.8 per cent rise.
A sea of green descended on the Straits Times Index (STI), shoving aside for now the all-pervasive gloom and bringing badly needed relief to investors.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>TRIPLE TREAT
'It was a day of comebacks for all equities. Investors were given the extra confidence by the United States and Chinese authorities and Hong Kong's strong surge, and they responded accordingly.'
A local dealer
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Rollercoaster ride
MARKET SUMMARY-SINGAPORE
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</TD></TR></TBODY></TABLE>The result was a 140-point surge for the STI to 2,559.07 - its biggest one-day gain since August last year.
That, however, was not enough to ensure a net gain for the week. The earlier blood-letting meant the STI still ended the week down 11.6 points.
'It was a day of comebacks for all equities,' said a local dealer.
'Investors were given the extra confidence by the United States and Chinese authorities and Hong Kong's strong surge, and they responded accordingly.'
Volume hit its highest this week - 2.1 billion shares worth $2.7 billion - as investors made a beeline for blue chips.
The first treat - and the main driver of the sharp rebound - was talks involving US Treasury and Federal Reserve officials and lawmakers on what could turn out to be the biggest bailout ever.
Sources say the US government may set up funds totalling as much as US$1.2 trillion (S$1.72 trillion) to purchase failed assets and insure investors in money market funds.
The second treat was the boost from the US and Hong Kong stock markets. Wall Street put on a strong showing overnight, with the Dow Jones Industrial Average posting its biggest one-day percentage jump since Oct 15, 2002. The Dow ended up 3.86 per cent at 11,019.69, providing the perfect fillip for Asian markets, including Singapore, at the opening bell.
That set the stage for Hong Kong's wild recovery, which fuelled hopes of a strong rebound in Singapore. The Hang Seng Index soared 9.6 per cent to 19,327.73 - its biggest one-day gain in eight months - after Beijing said it would buy shares of China's three largest banks.
The third treat came as Beijing chipped in with measures to boost its economy and slumping stock market, such as abolishing stamp duty on stocks. In response, the Shanghai Composite Index powered ahead by 9.5 per cent.
Back home, it was a blue chip-led relief rally, with bank stocks spearheading the charge. The STI surged from the opening bell, advancing 4.2 per cent by lunch time. The party continued even after Hong Kong closed, with the STI gaining almost 20 points in the final hour.
DBS Group Holdings jumped $1 to $17.12, United Overseas Bank added $1.06 to hit $17.78 and OCBC Bank gained 34 cents to $7.68. These banks alone accounted for a 43.6-point gain in the index.
Other blue chips advanced too, joining 26 of the STI's component stocks in positive territory. Index heavyweight SingTel surged 25 cents to $3.57. Keppel Corp jumped 70 cents to $8.70, while the Singapore Exchange added 64 cents at $6.71.
There was also cheer for property plays, with the FTSE ST Real Estate Index, which tracks 41 property companies listed here, jumping 7.2 per cent to 546.91 points. Hongkong Land gained 28 US cents at US$3.25. CapitaLand added 31 cents at $4.10, while City Developments advanced 63 cents to $9.63.
Singapore-listed Chinese stocks, or S-chips, enjoyed some relief from the recent sell-down, buoyed by Shanghai's 9.5 per cent gain. The FTSE ST China Index advanced 9.4 per cent to 277.1 points.
That saw key counters rising. Shipbuilder Cosco Corp gained 26 cents at $1.82, while property play Yanlord rallied 34 cents to $1.47. Another shipbuilder, Yangzijiang, rebounded nine cents to 62.5 cents.
Analysts, though, are urging caution in the long term. JPMorgan Chase advises investors to view Chinese shares 'with a cautious eye'.
It notes: 'We screened S-chips with a market cap of over $200 million and found that 13 out of 21 stocks...triggered various warning bells.' [email protected]
BULLS AND BEARS
</TR><!-- headline one : start --><TR>STI surges 5.8% in 'a day of comebacks'
</TR><!-- headline one : end --><TR>Historic US bailout and initiatives from China lift investor sentiment </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Alvin Foo, Markets Correspondent
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->AFTER suffering through four harrowing days of declines, Singapore's investors yesterday pounced on a triple treat of bright news, powering the badly bruised local market to a whopping 5.8 per cent rise.
A sea of green descended on the Straits Times Index (STI), shoving aside for now the all-pervasive gloom and bringing badly needed relief to investors.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>TRIPLE TREAT
'It was a day of comebacks for all equities. Investors were given the extra confidence by the United States and Chinese authorities and Hong Kong's strong surge, and they responded accordingly.'
A local dealer
RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
<!-- Photo Gallery -->
</TD></TR></TBODY></TABLE>The result was a 140-point surge for the STI to 2,559.07 - its biggest one-day gain since August last year.
That, however, was not enough to ensure a net gain for the week. The earlier blood-letting meant the STI still ended the week down 11.6 points.
'It was a day of comebacks for all equities,' said a local dealer.
'Investors were given the extra confidence by the United States and Chinese authorities and Hong Kong's strong surge, and they responded accordingly.'
Volume hit its highest this week - 2.1 billion shares worth $2.7 billion - as investors made a beeline for blue chips.
The first treat - and the main driver of the sharp rebound - was talks involving US Treasury and Federal Reserve officials and lawmakers on what could turn out to be the biggest bailout ever.
Sources say the US government may set up funds totalling as much as US$1.2 trillion (S$1.72 trillion) to purchase failed assets and insure investors in money market funds.
The second treat was the boost from the US and Hong Kong stock markets. Wall Street put on a strong showing overnight, with the Dow Jones Industrial Average posting its biggest one-day percentage jump since Oct 15, 2002. The Dow ended up 3.86 per cent at 11,019.69, providing the perfect fillip for Asian markets, including Singapore, at the opening bell.
That set the stage for Hong Kong's wild recovery, which fuelled hopes of a strong rebound in Singapore. The Hang Seng Index soared 9.6 per cent to 19,327.73 - its biggest one-day gain in eight months - after Beijing said it would buy shares of China's three largest banks.
The third treat came as Beijing chipped in with measures to boost its economy and slumping stock market, such as abolishing stamp duty on stocks. In response, the Shanghai Composite Index powered ahead by 9.5 per cent.
Back home, it was a blue chip-led relief rally, with bank stocks spearheading the charge. The STI surged from the opening bell, advancing 4.2 per cent by lunch time. The party continued even after Hong Kong closed, with the STI gaining almost 20 points in the final hour.
DBS Group Holdings jumped $1 to $17.12, United Overseas Bank added $1.06 to hit $17.78 and OCBC Bank gained 34 cents to $7.68. These banks alone accounted for a 43.6-point gain in the index.
Other blue chips advanced too, joining 26 of the STI's component stocks in positive territory. Index heavyweight SingTel surged 25 cents to $3.57. Keppel Corp jumped 70 cents to $8.70, while the Singapore Exchange added 64 cents at $6.71.
There was also cheer for property plays, with the FTSE ST Real Estate Index, which tracks 41 property companies listed here, jumping 7.2 per cent to 546.91 points. Hongkong Land gained 28 US cents at US$3.25. CapitaLand added 31 cents at $4.10, while City Developments advanced 63 cents to $9.63.
Singapore-listed Chinese stocks, or S-chips, enjoyed some relief from the recent sell-down, buoyed by Shanghai's 9.5 per cent gain. The FTSE ST China Index advanced 9.4 per cent to 277.1 points.
That saw key counters rising. Shipbuilder Cosco Corp gained 26 cents at $1.82, while property play Yanlord rallied 34 cents to $1.47. Another shipbuilder, Yangzijiang, rebounded nine cents to 62.5 cents.
Analysts, though, are urging caution in the long term. JPMorgan Chase advises investors to view Chinese shares 'with a cautious eye'.
It notes: 'We screened S-chips with a market cap of over $200 million and found that 13 out of 21 stocks...triggered various warning bells.' [email protected]
