Gains in US futures, HK, China push STI up

BLUE chips again dominated trading on Thursday during a session in which the Straits Times Index (STI) underwent a familiar pattern of tracking movements in Hong Kong, Shanghai and the Dow futures. Gains in all three meant the STI jumped 31.22 points or 1.05 per cent to 3,015.14, pushed higher by the three banks, Singtel and Keppel Corp.

Turnover for the whole market was low at 1.5 billion units worth S$1.1 billion, of which S$794.6 million or 72 per cent was done in the 30 index members - a percentage that was in line with daily trading over the past 2-3 weeks. Excluding warrants, there were 288 rises versus 129 falls.

News reports suggested that equities in China and Hong Kong rose because of hopes that the government will soon announce fresh stimulus measures. Reuters reported that outstanding margin loans in China rose in the past five sessions and that last week, investors' securities accounts witnessed weekly net inflows for the first time in six weeks.