STI lift may be due to early window dressing

THE Straits Times Index (STI) on Thursday rose 12.57 points to 3,431.59, possibly thanks to early quarter-ending window dressing as well as expectations of a Wall Street rebound during its own Thursday session after a steep Wednesday plunge. The rise came despite weakness throughout the region and Europe opening in the red.

Not unexpectedly, the three banks were among the index's top gainers, though there were also notable contributions from Keppel Corp, CapitaLand and Singtel. Turnover at 1.5 billion units worth S$1.2 billion compared well with Wednesday's feeble S$950.6 million, and the broad market excluding warrants managed 249 rises versus 160 falls.

Shares of water treatment firm SIIC Environment, which had risen S$0.014 or 9.3 per cent on Wednesday to S$0.164 on news that the company plans to buy into a group of China water treatment firms, on Thursday slipped S$0.001 to S$0.163 on volume of 28.7 million. The purchase is to be financed partly by new shares priced at S$0.132 each.