STI gains 20 points in CNY eve half-day trading

IT WAS a no-brainer that the half-day trading activity in the local bourse on Wednesday on the eve of the Chinese New Year break to usher in the Year of the Goat would be baa-land (bland).

The upside was that the benchmark Straits Times Index (STI) managed to climb 19.75 points or 0.6 per cent to 3,435.66.

The gains were spurred by a positive close on Wall Street overnight and reduced pessimism over the Greek debt saga following news reports that Greece may seek an extension of the bailout agreement that expires on Feb 28.

With that, investors appear to be more hopeful of Greece finding common ground with its eurozone partners despite the collapse in talks earlier this week, which had set off Monday blues.

However, ABN Amro, in a research report, says reaching an agreement may still be a tall order. "It is unclear at this stage how much - if any of this - Greece will agree to. So while we do expect a deal to be agreed eventually, it could still be tough going," it said.

The Dow Jones Industrial Average and S&P 500 both closed up 0.2 per cent on Tuesday, with the latter hitting its second record close for the year. The tech-heavy Nasdaq added 0.1 per cent.

The key question in traders' minds is: will the Year of the Goat be a boon for the bulls in the stock markets?

Historically speaking, there may be much to look forward to.

"On average, goat years since 1943 have been very good for stock markets with major world indices posting gains of between 15 and 35 per cent," according to CMC Markets - adding, however, that it's the reverse for commodities, which have posted declines in half of the last four goat years.

The STI has not fared too shabbily for the year so far, having gained 70.51 points or 2 per cent. It has been holding well above the 3,400 mark after breaching the psychological point in late January and marched its way to a 52-week high of 3,444.57 a week ago on Feb 11, although it has snipped off some points since then.

Over the short trading week, it has gained marginally, inching up 9.4 points or 0.3 per cent. Turnover stood at 634 million shares worth S$759 million, with 210 counters up, 120 down and 457 unchanged.

Gains were led by CapitaMall Trust, which rose six Singapore cents or 2.9 per cent to S$2.15. Genting Singapore climbed two Singapore cents or nearly 2 per cent to S$1.05.

Noble Group notched up its first gains in three days after the Monetary Authority of Singapore said it was reviewing a report by Iceberg Research and would take appropriate action in the event of breaches of the securities law. Shares of Noble - the firm has vehemently defended itself against Iceberg's allegations - advanced two Singapore cents or 1.9 per cent to S$1.07. It was the second most active for the day with 41 million shares worth some S$44 million traded.

Neptune Orient Lines jumped three Singapore cents or 3 per cent to S$1.02 with 22 million shares done - following news that it plans to sell its logistics business, APL Logistics, to Kintetsu World Express for US$1.2 billion.

The day's other big gainers were CapitaLand, which rose five Singapore cents or 1.4 per cent to S$3.68. The real estate firm announced a strong set of quarterly results on Tuesday, with net profit rising nearly three-fold to S$409 million.