Despite mid-week blip, STI manages 2% gain over the week

IT WAS a Trump reflationary play that helped the Straits Times Index (STI) on Tuesday regain the 3,000 mark lost since early November 2015, and it was Trump-related disappointment that dragged the STI below that level two days later on Thursday.

On Friday, however, the index managed to regain it when it jumped 32.07 points or 1.1 per cent to 3,025.07, albeit in mediocre volume of S$1.7 billion units worth S$1.1 billion and with more than a hint of short-covering in the air. The Dow futures on Friday traded about 20 points higher during the day but stood only eight points up at 5pm. For the week, the STI gained 62 points or 2 per cent.

All in all, it was a good chance to trade the three banks because they are thought to benefit the most from rising interest rates that would ensue if Donald Trump follows through on his pre-election spending rhetoric, Global Logistic Properties because it is in takeover talks, and a handful of second liners, depending on their announcements.