Weak Dow futures = weak STI

THE closure of Hong Kong for the Dragon Boat Festival on Thursday meant traders here were solely reliant on the Dow futures for direction, with the result that a fall in the latter meant the Straits Times Index lost 18.58 points at 2,843.80.

Turnover dropped to 1.04 billion units worth S$913 million of which S$646 million or 71 per cent was done in the 30 STI components. Excluding warrants, there were 169 rises versus 218 falls in the whole market.

The STI had risen for five straight sessions before Thursday, gaining about 72 points along the way. A correction was therefore not surprising, according to traders.