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DJIA And Nikkei Hit Record Highs As STI Enters 2014 Flat
Singapore Market Commentary | 03 January 2014
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By: Shane Goh
Articles (99) Profile

In his latest act since taking office in Dec-12, Japanese Prime Minister Shinzo Abe unveiled the nation’s biggest ever budget. Its government will spend 95.9t yen in the year from Apr-14 as it seeks to stimulate the economy. The move sent the Nikkei 225 index to its highest level since the Lehman crisis.

Across the Pacific on American soil, the Dow Jones Industrial Average (DJIA) hit a fresh high of 16,588.25 on 31 Dec-13, spurred on by positive data released from the US, as markets await the reduction in the Fed’s monthly bond purchases to US$75b from US$85b starting in January.

The effect of the Fed’s tapering was felt on local shores, as the Straits Times Index (STI) reversed losses suffered in the first two weeks of Dec-13. Since hitting a month low of 3,025.41 on 12 Dec-13, the index rebounded, albeit on lower monthly volume, due to certainty in market direction from the Fed. Despite enduring a volatile year which saw a 474 points price swing between its high and low, the STI closed at 3,131.47 on 3 Jan-14, a level close to the start of 2013.

At the company level, top performers for the last 2 weeks of the year include HanKore Environment Tech Group and Charisma Energy Services. The former enjoyed a 65.3% surge in share price on news of a potential acquisition of environmental water sector assets of China Everbright International and its subsidiary. Ezion Holdings, a major shareholder in Charisma, raised its stake in the renewable energy service provider by an additional 109m shares, sending the latter’s stock price up 27.4%.

As we enter 2014, the market awaits the passing of baton from Ben Bernanke to Janet Yellen as the latter is poised to become the first woman and democrat since Paul Volcker stepped down in Aug-87 to head the Federal Reserve of the world’s largest economy.

Currently pursuing his Chartered Financial Analyst qualification, Shane provides coverage on the property, consumer and environmental sectors at Shares Investment.

Please click here for more information about this author.

Charisma Energy Svcs  -- -- --   
Business: Co engages in the provision of mechanical & electrical engrg svcs as well as the devt, ownership & chartering of oil & gas & marine related assets.

Insight: Aug-18, 1H18 revenue increased by 4% due to revenu... Read More

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