Volatile session as STI sinks into the red

RISK on or risk off? Clearly, traders in the local market on Wednesday were unable to decide, as the Straits Times Index (STI) first shot up by 26 points to an intraday high of 2,815 before dropping alarmingly back to 2,786.13 at the close, for a net loss of 3.32 points for the day.

Wednesday's turnover of 791.3 million shares worth S$782 million was poor and illustrated the caution with which all financial markets approached the UK's June 23 "Brexit" vote.

Some players, however, were prepared to bank on Britain voting to stay in the eurozone, which probably explained the early rise in the STI, though this "risk on" phase could also have been because of receding worries of a US rate hike after US Federal Reserve chair Janet Yellen delivered a relatively dovis…