THE Straits Times Index dropped 25.57 points to 2,859.12 on Friday, bringing its loss for the week to 58 points or 2 per cent; for the year, the fall has been 15 per cent.

Turnover on the five days this week was low and focused mainly on blue chips and penny stocks.

Overseas markets provided little direction, probably because traders are waiting for next month's US Federal Open Market Committee meeting, at which an interest rate hike is widely expected, or because of the decision by the International Monetary Fund (IMF) on Monday on whether the Chinese yuan should be admitted as a reserve currency.