
SIAS
2021-02-28 11:41:39
Monthly wrap for February 2021: Vaccine optimism vs rising bond yields
The STI gained 1.6% for Feb at 2,949.04;
Optimism came from vaccine news, pessimism from higher bond yields;
Wall St’s all-time highs on Wed were erased by fears of rising rates;
Wilmar announced record dividend;
Sembmarine hopeful that worst of writedowns is over;
CapitaLand reported first-ever loss;
OCBC and UOB reported lower 4Q profits;
Writedowns for Sincere Property dragged CDL into the red.
Opposing forces set the direction
As the month of February unfolded it became apparent that direction would be set by two opposing forces. On the upside was optimism surrounding vaccine rollouts and development, whilst on the downside was pressure from rising bond yields that came because of an improving economic outlook – although the 10-year US Treasury yield was down 6 basis points at