Equities outlook - Will the second half of 2021 be as good as the first?

FOR the first six months of 2021 - as vaccinations against the Covid-19 virus gained momentum here as well as around the world and hopes grew that economies might soon reopen - the Straits Times Index rose about 287 points or 10.1 per cent to 3,130.46, recovering almost all of the 11.7 per cent it lost for the whole of 2020.

It was the best first half since 2017 and the index's total return for the six months was an impressive 13.8 per cent, placing it among the top performers in the Asia-Pacific.

Much of the confidence investors have had in equities around the world comes from Wall Street, where enormous amounts of monetary and fiscal stimulus have enabled stocks to keep powering ever higher in the expectation that the money will propel a US economic recovery - for example, in the final five days up to June 30, the S&P 500 set five consecutive all-time high records.