Are we occupied by HK situation?

IT'S difficult to envisage any radical change this week from the low-volume, low-volatility trading regime that appears to now be an almost permanent feature in the local stock market. Even Wall Street's rebound on Friday is unlikely to have much impact here since the Straits Times Index already rose sharply on Friday in anticipation of that rebound.

To be frank, the STI's movements have hardly bred confidence in equities - the index is now just off a four-month low, it's the fourth quarter and the gain for the year is a paltry 2.8 per cent, daily volume has averaged under a billion dollars for at least six months and one can only imagine how an interest-rate hike in the US would adversely affect already fragile confidence.

Adding to what can only be described as a dull outlook is that even as Ukraine recedes from being a major component of "geopolitical risk" - thanks to various ceasefires brought on by tremendous economic pressure on Russia - its place has been taken by Hong Kong, where pro-democracy protests last week rocked the stock market and led to spillover selling here.