Gains rally extends to sixth straight day
The STI rose another 0.1% and even managed to break through the 2960 resistance level at one point during yesterday's trading.
Commodity stocks, though, continue to plummet with Wilmar and Golden Agri-Resources topping the losers' bracket. Meanwhile, property stocks like CapitaMalls Asia and CapitaMall Trust continue to be resilient and unlikely to be purchased at a bargain.
Here's more from IG Markets:
Singapore shares recorded their sixth straight day of gains as they seem to be defying gravity as traders enjoyed another upbeat session.
The STI rose a modest 0.1%, compared to the 1% plus gains it had notched up in the last three sessions. But a gain is still a gain, especially with so much uncertainty still looming.
Investors are increasingly pinning their hopes on another bout of monetary easing being launched by at least one the world’s major central banks. This has been the latest catalyst for markets, having replaced the EU summit which had been the driving force at the start of the week for this mini rally.
The local market broke through a key resistance level of 2960 this morning although it slipped back down to end the day at 2948.8.
Among the stand-out counters was HongKong Land which rose 2% while commodity stocks found the going tough. Wilmar dropped 1.3% while Golden Agri-Resources fell 2%.
Anyone looking for bargains from the likes of property stocks such as CapitaMalls Asia and CapitaMall Trust and within the banking sector could be sorely disappointed. These stocks have led this year’s rally in the STI and are holding up well to the strong global winds of recession.