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STI Clears 2,850 Level

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by Donavan Lim

Asian shares rose as investors bet that eurozone crisis and stalling global growth will prompt major central banks to launch a fresh round of monetary stimulus.

The US Federal Reserve will conclude a two-day policy meeting late Wednesday and speculations are mounting that the US central bank will extend its bond-buying programme, “Operation Twist”

“The focus of global markets right now, however, is undoubtedly the Fed. Will they stick or twist? Will there be no twist but some other move to ease in another manner? What will be the tone of the language in the accompanying statement?,” commented Avis Wang of IG Markets in Singapore.

The 30-share Straits Times Index (STI) edged up 13.27 points to close at 2,855.68 Wednesday, clearing the 2,850 resistance level.

Other regional indices also surged. The Nikkei 225 and Hang Seng indices increased 96.44 and 102.18 respectively.

Commodity counters continued to gain ground, with Wilmar International climbing 4 per cent to S$3.690, while Golden Agri Resources gained 2.3 per cent to S$0.665.

DBS Group was up S$0.150 to close at S$13.770. Bloomberg reported that Indonesia may allow banks to own as much as 90 per cent of commercial lenders easing concerns of DBS’ takeover of PT Bank Danamon Indonesia.

Property stocks had a mixed day. CapitaLand declined S$0.04 to S$2.690 and City Developments gained S$0.06 to close at S$10.78.