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The Week In Numbers – New Kid On The Block

It seems that a new cab company could be about to join the Singapore stock market. TRANS-CAB Holdings, which is Singapore’s second-biggest taxi outfit behind ComfortDelGro (SGX: C52), has lodged a preliminary flotation prospectus with the financial regulator. The cab firm is reportedly looking to raise around S$100m. Amongst the things that TRANS-CAB hopes to do include increasing its fleet size and a strategic acquisition as the industry consolidates.

The Japanese stock market hit a 7-year high of over 17,000 points this week thanks to more monetary easing by the Bank of Japan. The central bank said it would inject an additional 10 to 20 trillion yen a year into the Japanese economy to ease credit conditions. Whilst the increase in liquidity helped to boost equity prices, it had the opposite effect on the yen. The Japanese currency fell to a seven-year low.

The price of gold has fallen to its lowest level since 2010. The yellow metal, which was once the darling of speculators, is now worth US$1,161 an ounce. That is a far cry from its peak price of over US$1,800 an once in mid-2011. It appears that traders believe that it is now a question of “when” rather than “if” the US central bank will increase interest rates.

The Dow Jones Industrial Index closed at another record high of 17,554 points this week. The US economy appears to be on the mend with employment on the rise. Currently, the US market is valued at 16 times earnings, which implies an earnings yield of more than 6%. By comparison, the yield on the 10-year US Treasury, which is proxy for a risk-free investment, is around 2.4%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.