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Portfolio up as markets continue to run, Old Chang Kee added

Zavier Ong Published on Mon, Feb 13, 2017 / 7:26 AM GMT+8

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SINGAPORE (Feb 13): Equity markets continued their run over the past week, with the Straits Times Index hitting yet another 52-week high of 3,076.5 points on Feb 7. The STI gained 0.2% over the period of Feb 1 to 7, and is up 6.7% for the year. Over the same period, our portfolio has gained 1%. It is now up 2.2% for the year.

The run-up in the STI this year mirrors that of the US benchmark Standard & Poor’s 500 index, which is hovering close to its Jan 25 all-time high of 2,298 points. Bloomberg data indicates that the S&P’s price-to-earnings valuation is at its highest since December 2009. The S&P closed at 2,292.6 on Feb 6. Strong employment data in the US, an increase in crude oil prices and an expected rollback in financial regulatory rules in the US were among the positive headlines lifting sentiment. Investors also expect US President Donald Trump to fulfil his campaign pledges to slash the corporate tax rate from 35% to as little as 15% and increase public spending.

Several stocks in our portfolio recorded gains this week, with some hitting their 52-week highs. Egg producer Chew’s Group gained 4.2% over the period and is now up 17.5% for the year; its closing price of 36 cents on Feb 7 was a 52-week high.