STI stays flat ahead of ECB meeting

A LARGE afternoon bounce in the Dow futures and a firm opening in Europe ahead of a key European Central Bank (ECB) policy meeting helped the Straits Times Index on Thursday reverse a 20-point intraday loss and instead finish a net 0.25 higher at 2,883.89.

It was the index's third consecutive rise and brought its three-day gain to 29 points or just over one per cent. Volume amounted to one billion units worth S$955.3 million and excluding warrants there were 182 rises versus 222 falls.

The ECB on Thursday is widely expected to unveil enhanced monetary stimulus measures aimed at helping the eurozone achieve its inflation targets and boost growth. These hopes come from strong hints last month from its president, Mario Draghi. Among the measures anticipated are a cut in deposit rates, an extension of the ECB's "quantitative easing" stimulus into 2017 and an increase in the pace of bond purchases.