STI loses 2% on Friday on trade war jitters

THE Straits Times Index (STI) has cumulatively shed 2.6 per cent this week to finish at 3,421.39, with the greatest drop incurred in a knee-jerk reaction on Friday as trade tensions escalated between the United States and China.

In the last trading session of the week, the benchmark index fell nearly 70 points or 2 per cent. Intra-day, it declined as much as 2.7 per cent, but staged a mild recovery in the afternoon. Trading volume was heavier than usual, with some 1.9 billion shares worth about S$1.9 billion changing hands, and losers outpacing gainers 377 to 84.

Commenting on Friday's trading, Eli Lee, head of investment strategy at Bank of Singapore, said the weakness of the STI was in line with broad corrections across global equity markets, which suffered a jolt from rising US-China trade frictions.