Caution reigns as market awaits Fed clues

THE Straits Times Index on Tuesday dropped 7.62 points to 2,839.44 but the more important statistics were volume done - 1.8 billion units worth S$994 million, figures more reminiscent of the quiet days of 2015 than those which might herald a continuation of the two-week rally that has taken the index up about 10 per cent.

The average unit value, which was around S$1 at the start of the year, was S$0.55, while 15 of the top 20 actives list were priced below S$0.20.

Predictably, observers said traders had turned cautious ahead of the two-day US Federal Reserve Open Markets Committee (FOMC) meeting, which although was not expected to end with an interest rate hike, would be closely watched for clues as to when the Fed might act next.