ST Index gains for first time this week

THE main distinguishing feature of Thursday's session was a play on food and beverage (F&B) stocks that pushed up Yeo Hiap Seng, Thai Beverage, Jumbo Group and Sino Grandness Food. Otherwise, turnover at 1.2 billion units worth S$731 million was 63 per cent lower than Tuesday's S$2 billion, although the latter was admittedly inflated by window-dressing of key blue chips (or "portfolio rebalancing").

Next week's US Federal Open Market Committee meeting could provide a short-term trading opportunity, though observers are uncertain as to whether a rate hike would be good or bad for stocks.

If the Federal Reserve raises rates, it could signal confidence in the economic recovery that then helps drive stocks. If it doesn't, markets could still rally as it gives risk assets a few more weeks' breathing space.