It seems investors are not affected at all by the recent market correction and Sumatra earthquake. New IPO of palm oil firm Bumitama soared on debut, rising 32% from IPO price of $0.745 and closed at $0.98 for the first day.
If you recall, Just six months’ ago, the market was spooked by Euro debt crisis and the voices of collapse of the world were loud and clear.
The talks of rising Sovereign Credit Default Swap (CDS) of European PIIGS (Portugal, Italy, Ireland, Greece and Spain) were all over the news. It was the hottest daily topic in the world even my Chinese speaking mother-in-law could talk about it and urged my father-in-law to sell all his investment holdings.
However, all seemed to vanish since beginning of this year when the stock market started to rally. Where was all the pessimism gone?
If you think the “worst is behind us” as commented by Germany’s Health Minister Daniel Bahr, I will show you a chart of Credit Default Swap (CDS) of Spain and Italy as today. Does it ring a bell to you?
