STI closes higher despite US missile strike

NEWS that the US launched a missile strike against Syria on Friday brought a wave of selling throughout the region, dragging the Straits Times Index down more than 20 points at one stage. A rebound in the Dow futures, however, helped the STI rebound to 3,177.27 for a net gain of 1.68 points for the day, bringing its rise for the week to two points.

Turnover on Friday amounted to 3.2 billion units worth S$1.25 billion, the highest for the week. Excluding warrants, there were 271 rises versus 205 falls.

Observers said news of the missile strike, coming at a time when China's leader Xi Jinping was visiting the US, unnerved markets that had already been grappling with hawkish Federal Reserve minutes that suggested two more interest rate hikes instead of the expected one, and worry that the Trump administration will not be able to deliver on its budget claims.