Blue chips take over as penny fever subsides

SINCE the start of April, the statistic that has been arguably the most relevant in describing events in the local stock market is average value per unit traded. This figure sank to below S$0.40 in the middle of the month in line with a surge in punting of low-priced stocks.

That was most probably thanks to proprietary desks looking to capitalise on any positive spillover feelings from a massive rally in Hong Kong and to a great extent, it succeeded.

On Thursday, however, when the Straits Times Index enjoyed a late window-dressing push to close 0.24 of a point higher at 3,487.39, volume traded was 1.4 billion units worth S$1.5 billion which meant average value per unit traded was S$1.07 - the highest for the month, suggesting that penny fever has rapidly subsided.