STI snaps two-day losing streak

Property stocks were among the favoured counters with CapitaMalls Asia rising 2.5% and CapitaLand ending 1.9% higher.

IG Markets Singapore said (for 15 June 2012 trading):

The STI shot up 1.3% today to clock in some healthy gains ahead of a potentially volatile start to next week once the Greek elections have taken place.

This snaps a two-day losing streak although today’s gains were fuelled by talk of G20 central banks drawing up an action plan for a Greek fallout rather than a genuine shift in sentiment.

Asian markets were on the whole cautious in trading ahead of the monumental elections that could change the face of the eurozone on Sunday.

Local traders were also lifted by hopes the Fed may launch another round of quantitative easing which saw Wall Street rally last night. Asian traders picked up the baton this morning and put their eurozone woes behind them for a few hours.

On the local market, property stocks were among the favoured counters with CapitaMalls Asia rising 2.5% and CapitaLand ending 1.9% higher. This comes despite new private homes sales tumbling 32% last month compared to April’s figures.

There is growing speculation the government may introduce more property-cooling measures and is targeting shoebox apartments next.

Other data out of Singapore today saw retail sales fall 0.9% in April while tourism numbers rose a healthy 9% during the same month.