Skeptics like me were expecting the market to fall sometime soon, but not to yesterday's extent.
The downturn on the Singapore market last evening was unexpected and, for lack of a better word, scary.
It followed the Thai stock market crash after the Thai central bank unveiled measures to curb speculative trading on the Thai baht.
The scene was reminiscent of how the 1997 Asian Financial Crisis started – right after the devaluation of the baht.
According to Bloomberg news, Thai Finance Minister Pridiyathorn Devakula today said the government would abandon the new requirements for banks to lock up 30% of new foreign currency deposits for a year, but that the rules would stay put on other investments including bonds and property.
It's just a week and a half to the new year.
Seriously, this is too much action for the holiday season and mood.
Though investors could probably take comfort in how the market would have gained enough momentum from yesterday's fall to propel itself to new heights in the remaining sessions on the Singapore market.
It's like a sling shot, when you stretch the bullet (or steel ball) all the way back, let go, and propel it to oblivion.
Looks like there's hope for the STI to shoot past 3000 after all.
Serene Lim
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