This could be the year of growth stocks

Insiders shake off market indifference to raise stakes in S’pore firms with profit surge

- 

Although benign inflation numbers cheered markets, there was discernable caution among traders following several weeks of record-setting gains.

While Wall Street, which is the undisputed beacon for global equity markets, continued powering to new highs, the past week was also characterised by some turbulence.

The Dow Jones ended the week 0.11 per cent down at 39,087.38, while the S&P 500 inched up 0.95 per cent to 5,137.08. Nasdaq rose 1.74 per cent for the week to 16,274.94 points.

This comes after the United States' personal consumption expenditure, which is closely followed by the US Federal Reserve, came in within estimates, as it rose 0.3 per cent month on month in January and 2.4 per cent year on year.

In Singapore, the Straits Times Index (STI) ended the week down 1.5 per cent at 3,135.76, weighed down by the trio of banks.

Most of the week saw the STI trade range between 3,170 and 3,140, a vicinity it has been stuck in for four weeks spanning mid-January to mid-February.

While enthusiasm for bank stocks has been hit somewhat by concerns over their net interest margin income if rates were to fall, the Singapore market as a whole has not responded to E positive news from other companies.

The stock of Straco Corporation fell despite the company tripling its earnings and announcing a 4 per cent dividend payout.

It was the same for Centurion Corporation, even after it announced a 114 per cent rise in annual earnings and declared a dividend of 1.5 cents.

China Aviation Oil ended March 1 at a week low after reporting a 76 per cent rise in earnings and unveiling plans to pay 2.71 cents in final and 2.34 cents in special dividends.