THERE is finally a whiff of spring in the air this morning, as the benchmark Straits Times Index broke its six-day losing streak and rose by up to 30 points.
Does this mean that we may be witnessing the start of the traditional Chinese New Year rally ?
Well, the portents look good.
US President-elect Barack Obama takes office next Tuesday and Wall Street, tired of the shenanigan associated with the current lame-duck administration, may give him a rousing welcome. Traditionally, investors are always willing to give a new US President a chance to make a difference but this time, the stakes are much higher.
Any run-up by Wall Street will provide the backdrop for stock markets across the globe to rise as well.
Even news on Citigroup - which was responsible for much of the market woes across the region yesterday - is turning positive.
Investors have welcomed reports that the beleaguered financial giant may shed as much as US$600 billion worth of assets to get fit again, by chasing its price up by almost 6 per cent last night.
This, in turn, has caused local banks to rally after their lacklustre showing yesterday. As of now, DBS Group Holdings has risen 18 cents to $8.46 while United Overseas Bank gained eight cents at $12.46 and OCBC Bank is up five cents at $5.12.
Meanwhile, local investors can also look forward to the measures to be unveiled by the Government in the upcoming Budget next Thursday to help struggling businesses and Singaporeans coping with job losses and tax cuts.
Well, the newsflow may not be as positive as the boom years of 2006 and 2007 when the STI could rally for 10 days in a row, but it is certainly not as gloomy as last year.
It is also worth noting that despite the blows it had taken in the past week, the STI managed to hold above Dec 31's close of 1761.56. That level looks a good support for the STI for this year.
The Year of the Earth Ox starts in just over a week's time. It may not be as bountiful as 2006, the year of the Golden Pig, when investors really brought the bacon home with them but it will certainly not be as grim as the Year of the Rat now bowing out, where a staggering US$30 trillion in value of assets had been swept out, as the global credit crisis and con-men like Bernie Madoff gnawed a big hole in investors' pockets.
And synonymous with the Ox, virtues such as frugality and hardwork will become buzz-words again. The year augurs well for those who patiently pick up blue-chips at current distressed levels as they build up their portfolios.
Spring is in the air. With it springs a hope that we will enjoy a better year ahead.