Second liners steal the show as STI drifts

MOVEMENTS in the Straits Times Index sometimes fail to capture how the second and third-liners perform and this week provided an example of this.

A rebound in oil prices to near the US$50 per barrel mark and ambiguous US economic data that was not compelling enough to warrant higher interest rates kept the STI within striking distance of its Dec 31 2015 close of 2,882 when, despite a 9.98-point loss on Friday to 2,875.24, it still managed a six-point gain for the week. However, the real action was further afield.

Noble Group, for instance, enjoyed massive volume and percentage gains this week after research house Religare Capital Markets indicated that Noble's balance sheet might be cleansed by a US$1 billion injection from the sale of Noble's US business unit.