STI slides on worries over Japan, Europe

THE Straits Times Index, having inexplicably shot up 64 points on Friday before the Chinese New Year holidays, fell 41.11 points or 1.57 per cent to 2,582.10 on Wednesday, the first day of trading after the holidays.

A rebound in the Dow futures late in the afternoon and Europe opening in the black meant that the index finished significantly off its intraday low of 2,538. Excluding warrants, there were 85 rises versus 288 falls.

A plunging Japanese market where pushing interest rates into negative territory has not had the desired effect, a skittish Wall Street where doubts have arisen about the US' economic recovery and rumours of banking problems to come - possibly in Europe - combined to bring pressure to bear in high volume of 802 million units worth S$1.2 billion.