Thursday, January 17, 2008

STI - historical records of ups and downs

1) 455,69 (Feb 27, 1973 )
2) 609.54 ( Dec 5, 1985 )
3) 961.50 (Oct 20, 1987 )
4) 1,360.48 (Aug 7, 1990 )
5) 2,426.85 ( Dec 31, 1993 )
July 1997 :began wit0h the devaluation of the Thai Baht - The Index plunged from about 2,000 points in July to 1,073.47 on Jan 12, 1998
31 Aug 1998 - after 30 years, the 30-stock STII made way for the 55-stock STI and at its lowest level - 885.26 points
3 Jan 2000 - STI charged up a whopping 85% for the year, with a index of 2,582,94 . The technology revolution and globalisaton wave plus a cyclical recovery in Asia after the financial crisis sparked a surge in investor confidence. These were the factors helped to fuel the bull run.
The dot.com boom also saw Singapore's Pacific Internet making its successful debut on Nasdaq in February 1999. Creative shares soaring past the $50 mark in early 2000. At the peaks, such as Venture and Chartered Semiconductor hit $28.90 and $18.50 respectively.
The bubble started to burst around Mar 2000 following a sharp selldown on Nasdaq. Eventually, more than US$5 trillion (S$7.2 trillion) of tech firms worldwide was wiped out from that month to Oct 2002.
The STI was not spared, dropping from 2,582.94 in Jan 2000 to around 1,800 in May 2000 and ending the year just above 1,900.
The Sept 11 terrorist attacks in the US sent shockwaves around stock markets worldwide, and the STI took a belting in its aftermath.
Just a few days before the attacks, the STI was trimmed from 55 component stocks to 45, and changed from a value-weighted index to one based on a free-float method.
The attacks gave the new-look index a nightmare start. By Sept 21, the STI had lost more than 20%, falling to 1,241.29 points.
Stocks that were badly hit then including SIA, which nosedived by $3.55 to $7.45 The effect of the attacks was emplified by the fact that the world economy was then on the brink of a recession anyway.
However, the market's recovery wa swift. By mid-October, the STI had rally about 200 points and closed the year above 1,600
3,875.77 - Oct 11, 2007 - after more than trebling in 4-1/2 years. With Acute Respiratory Syndrome (Sars) and the Iraq war combined to drive the STI down to 1,213.82 points on 10 Mar 2003.
Sound fundamentals, a global trade boom, stable US interest rates and the rise of China and India have helped fuel the bull run seen in recent years. Its 16.6 % surge for the whole of last year marked its fifth straight year of gains.
In between, there was also time for the China Avaition Oil (Singapore) scandal, which erupted in late 2004.
It stunned investors when it chalked up US550 million in losses from oil options trading and had to seek protection from creditors.