Tapering worries keep haunting local stocks

IN a climate where the main worry is when the US Federal Reserve might start tapering its money printing and where strategists appear to be recommending developed markets (DMs) over emerging markets (EMs), the "new normal" as far as the local stock market is concerned appears to be soft prices, low liquidity and feeble demand.

Such has been the case since early October and the theme continued this week, when the Straits Times Index fell four out of five days, dropping 62 points or 2 per cent to 3,114.17. This loss took the index 53 points or 1.7 per cent into the red for the year.

In yesterday's session when the STI fell 10.21 points, turnover amounted to 1.5 billion units worth $945 million.