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Singapore: Fed statement helps push STI higher
Wall Street rallied after an apparently market-friendly statement by the Federal Open Committee on interest rates and the Straits Times Index followed - after having lost 14 points on Tuesday and Wednesday, the STI on Thursday rebounded 24.41 points or 0.73 per cent to 3,386.16. Most observers felt it was mainly short-covering. Whatever the case, the advance-decline score was a very mixed 229-230 excluding warrants and volume was about average at 1.2 billion units worth S$1.2 billion.
Within the index it was gains in Singtel, OCBC and Hongkong Land that contributed heavily to the final reading. Also helping was a firm session in Hong Kong where the Hang Seng Index closed 1.4 per cent higher and a firm opening Europe-wide.
Brokers however, did not think the index's rise would last beyond one or two days. "The FOMC was just the latest excuse for traders to do something, anything, which in this case was to cover their shorts," said a dealer. "The market very quickly forgets and will look for the next trigger."