China's crash sends local stocks reeling

W HEN the China and Hong Kong stocks were surging earlier this year, there was no sympathetic movement in local stocks. This caused much frustration among observers here who had grown accustomed to trading here following Hong Kong's lead.

As if that wasn't bad enough, even more frustrating was Wednesday's 55.94-point or 1.7 per cent drop to 3,284.99 that the Straits Times Index suffered which came as a direct consequence of the Hang Seng Index's crash by nearly 1,500 points or almost 6 per cent.

The spillover selling here was widespread, leading to an advance-decline score of 73 to 426 excluding warrants. Volume was the highest in several days at 1.8 billion units worth S$1.6 billion.