It was not an usual weekend when US Government made an aggressive decision to take over the two largest mortgage giants, Freddie Mac and Fannie Mae. This mortgage bailout plan on 7 September 2008 had take its effect on the broad Asian Markets.
Straits Time Index, STI, the index reflecting Singapore stock market rallied deeply into the green with a gain of 122.82 points or 4.77 percent on the 8 September 2008, Monday. A rally which I have not seen for a very long time. The heaviest traded stock would be Singtel with 49,293,000 shares changed hands. China stocks listed on STI also chalked up modest gains despite Shanghai Composite Index and Shenzhen Index going into the red. According to news, China investors do not believe that the bailout plan will benefit companies in China as it only able to ease US financial companies. However, it is not for the case for the rest of the Asian Markets as Hang Seng Index, HSI saw an incredible 860.99 or 4.32 percent gain which had led investors into some light at the end of the tunnel following last week very negative trading sessions.
Capitaland, a property company was also relatively heavily traded with 27,589,000 shares changed hands and a $0.290 or 7.1 percent substantial gain.
China Hongxing Sport, a China company listed in STI saw a modest gain of $0.02 or 5.7 percent. A sign of recovery for the China stocks listed in STI. China Hongxing has always been appearing on the top volumes of STI and had saw its price declining for the past weeks due affected by the negative sentiment over the Chinese Markets, in particularly Shanghai Composite Index.
The above are of personal opinion and not at all an inducement to trade.