STI up for the 7th consecutive session

JUST two months ago when the International Monetary Fund downgraded global growth at the same time China released weak economic numbers, the Straits Times Index (STI) sank to a six-month low of 3,194 before a US Federal Reserve-inspired rebound took it past 3,300, the Fed sticking to market-friendly language when discussing interest rates.

Two weeks ago when oil broke below US$60 a barrel, it looked like it would be a matter of time before 3,194 would be revisited or even breached when the index dropped 79 points on Dec 16 to 3,215.

Today, because stocks have rebounded sharply, news reports say that a strengthening US economy has hauled its stock market up, taking with it the rest of the world. The STI this week rose 74 points or 2.3 per cent to 3,353.68, rising on all four trading days, including 7.77 points in post-holiday Friday's session. In all, it was a seventh consecutive rise.