Caution reigns as market awaits Fed clues

THE Straits Times Index on Tuesday dropped 7.62 points to 2,839.44 but the more important statistics were volume done - 1.8 billion units worth S$994 million, figures more reminiscent of the quiet days of 2015 than those which might herald a continuation of the two-week rally that has taken the index up about 10 per cent.

The average unit value, which was around S$1 at the start of the year, was S$0.55, while 15 of the top 20 actives list were priced below S$0.20.

Predictably, observers said traders had turned cautious ahead of the two-day US Federal Reserve Open Markets Committee (FOMC) meeting, which although was not expected to end with an interest rate hike, would be closely watched for clues a…