ONLINE investment guide Investopedia defines the
"January effect" as a seasonal increase in stock prices during the
month of January that often occurs at the start of each year.
"Analysts generally attribute this rally to an increase
in buying, which follows the drop in price that typically happens in December
when investors, engaging in tax-loss harvesting to offset realised capital
gains, prompt a sell-off," said Investopedia.
"Another possible explanation is that investors use
year-end cash bonuses to purchase investments the following month."
Whatever the reasons for the phenomenon, the local stock
market enjoyed its own version of the "January effect" this week when
the Straits Times Index, which ended flat for 2016, burst into life during the
first week of 2017, gaining a total of 81.87 points or 2.8 per cent, including
Friday's 8.49 point rise.
Turnover in this holiday-shortened week averaged S$1.1
billion, with Friday's total coming in at 2.2 billion units worth S$1.14
billion.
Some SGX
Market Stock for 2017:
- ASCENDA REITS
- CAPITALAND COMMERCIAL TRUST
- OCBC
- VENTURE CORP
So Earning on These Stock are profitable
for Intraday & Contra Day Trader.
Get Live
Trading Signal With Us – www.equityprofit.com
No comments:
Post a Comment