Don’t tell anyone, but a big part of today’s sizable 38 point drop in the STI surely had NOTHING to do with:
- the US debt crisis
- the US PMI crisis
- the US employment situation crisis
- the EU debt crisis
- the China overheating crisis
- the Japan reality denial crisis
- the Australian housing crisis
- the Brazilian stock market crisis
- your favorite crisis of the moment
What’s more, today’s drop was largely predictable and interestingly reflexive.
Predictable - Today was the day SIA went XD, with a special dividend to the tune of $1.40 per share (on a share price of about $14). This was preannounced weeks ago. Today it ended $1.74 down, or 12.15%. As a component of the STI (try as I might I cannot find what the current SIA weighting is… grumble) SIA’s price drop is sure to have affected the STI, which is also a price ...
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