Bank stocks hold the key to where the Straits Times Index (FSSTI) will go..... Wednesday, 5 February, 2014 8:19 AM
Posted by Kevin Scully
...Posted by Kevin Scully
I had some feedback yesterday about my support level for the Straits Times Index at 2600. Some felt it was too bearish and that we are in a much healthier position today. Nobody really knows where the markets are headed. Sentiment and herd instinct will be key determinants and these will be driven by mutual fund flows. So if the funds continue to flow out of emerging markets back to the US market on perceived US$ strength we can expect the same.
Finance stocks account for about 30-35% of the weighting of the FSSTI Index. Finance stocks contributed to 50% of the decline in the FSSTI Index yesterday according to Bloomberg. So finance stocks hold the key to where the FSSTI Index is headed.
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