Stimulus, rate cuts offer reprieve but STI still at risk

LAST Friday, Singapore's Straits Times Index gained 99.74 points or 4.3 per cent to close at 2,410.74. Despite ending its losing streak, it closed the week down 223.26 points or 8.5 per cent from 2,634.00.

While markets in the region bounced back as investor sentiment improved after a series of government and central bank measures were announced, market watchers pointed out that this might not be sufficient to support the economic fallout from Covid-19.

"The cuts from the central banks are very helpful in terms of allowing the markets to function well. But we really need to see a very strong fiscal response to support individuals and businesses as we move through this crisis," said Johanna Kyrklund, chief investment officer and global head of multi-asset investments at Schroders.