Stimulus lifts STI but not everyone is a buyer
LAST Friday, Singapore's Straits Times Index gained 1.66 per cent or 41.20 points to close at 2,528.76. It finished the week up 118.02 points or 4.9 per cent, lifted by the government's mega Covid-19 relief package.
Almost every government in the world is taking unprecedented steps to soften an inevitable recession. But with the CBOE Volatility Index still hovering at levels higher than during the 2008-2009 financial crisis, many still feel it's too early to buy the bounce.
CGS-CIMB Securities chief investment strategist Lim Say Boon wrote last week: "The bubbles in equities, bonds, and fiscal/ monetary policy were awaiting catalysts for mean reversion. They found it in Covid-19. The markets will at some stage look past the panic and fear, towards anti-viral treatments and vaccines. But not before completion of a more painful mean reversion."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Porsche posts Q1 profit drop on ramp-up costs
IBM plots US$730 million expansion of Canadian semiconductor site
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly