Driven by Wall Street

WALL Street's return to "bad economic news is good for stocks" principal has probably been the main driving force behind the Straits Times Index's 205 points or 7.3 per cent rise over the week to 2,998.5, of which 51.47 points came on Friday.

Also helping has been a relatively stable China market, given the massive volatility it displayed last month.

Here, the overwhelming focus has been on blue chips throughout the past month, almost to the exclusion of the rest of the market. For most of the year up to September, a ballpark estimate of the proportion of daily dollar volume that was done in the 30 index components would be around 45-55 per cent; this week, the figure was around 75 per cent.