Window-dressing props up index; penny stocks show signs of life

A PROBABLE window-dressing push on the Straits Times Index and a return of penny stock punting marked the penultimate trading week of 2013.

Since United States Federal Reserve chairman Ben Bernanke announced last Wednesday a US$10 billion cut to the monthly US$85 billion money printing programme known as QE3, the STI has risen a total of 88 points or 2.9 per cent in five consecutive trading sessions, including a 15.4-point rise yesterday to 3,149.76, about 18 points off the 3,167 level at which it started the year.

One explanation for this gain is that markets are relieved that a tapering schedule for QE3 has finally been announced. On Thursday, Wall Street hit yet another all-time high, with the Dow Jones Industrial Average finishing at its 50th all-time high for 2013 and the S&P 500 ending at its 43rd record close.