STI below 3,000 on Trump disappointment

THE last time the Straits Times Index (STI) crossed 3,000 in early November 2015, it stayed there for three days. This time, the stay lasted one day less - on Thursday, the STI endured a second consecutive loss, this time by 7.94 points at 2,993. This was most probably in response to a plunge in the Dow futures ahead of an expected weak Thursday for a Wall Street that was said to be disappointed with US President-elect Donald Trump's Wednesday press conference.

Earlier on Thursday, gains in Global Logistic Properties (GLP) - which is in talks to be sold - DBS and UOB helped push the STI to an intraday high of 3,022 before it was swept under by afternoon selling. Turnover excluding warrants amounted to 1.7 billion units worth S$1.2 billion.

On the possible sale of GLP, OCBC Investment Research noted that the stock has risen to a two-year high but highlighted that GLP has emphasised that there is no assurance any transaction will materialise from its strategic review. "That said, despite the recent run-up, we continue to see long-term fundamental value in GLP's shares near current prices, which are trading near a still-undemanding 1.0x book value," said the broker.