The Dow Jones Industrial Average (DJIA) climbed to 26,656.39 on 23 April 2019 which is not too far away from the all-time high of 26,743.50 achieved in September 2018. Despite all the talks of an imminent recession, US companies continue to deliver decent results for the first quarter. Over the last two weeks, DJIA gained 1.2 percent finishing at 26,462.08 while the S&P 500 and Nasdaq Composite reached record territories before giving up some gains.
Nevertheless, the Chinese markets were quick to take profits as investors worried that the Chinese government may refocus on structural reforms instead of offering stimulus measures after it claimed better-than-expected economic growth. Last fortnight, Shanghai Composite Index slipped 3.2 percent ending at 3,086.40.
On the local bourse, Best World’s shares tumbled to a six-month low on a short-seller report, closing at $1.62 before it was halted on 24 April 2019. Short-seller Bonitas Research published a report questioning the health and wellness firm’s accounting and sales figures, alleging impropriety with regard to its China operations. Singapore Exchange’s regulatory unit SGX RegCo instructed Best World to call for a full independent review on the matters raised.
The earnings season kicked off with a good start as Keppel Corporation announced a turnaround of its offshore and marine division last quarter. The highly anticipated results from the banks are due to be released in the next one to two weeks which could to a large extent determine if the current rally may continue to run. Last two weeks, Straits Times Index rose 0.7 percent to close at 3,356.95.