STI falls amid banks' weakness, Trump woes and Spain attacks

POLITICAL posturing and the threat of war between the United States and North Korea were pushed aside this week, overshadowed by concerns over the local banks' exposure to the ailing oil and gas (O&G) sector, domestic political worries in the US surrounding escalating racial tensions and a terror attack in Barcelona. On Friday, the Straits Times Index (STI) fell for the fourth consecutive day, this time by 16.89 points to 3,251.99.

Over the course of the week, the index dropped 28 points or 0.9 per cent, the four-day losing streak somewhat cushioned by Monday's 29-point rise. That rise had been driven largely by the banks, and so it was that the subsequent weakness came from falls in DBS Group, UOB and OCBC Bank. Selling of the banks came after O&G firm Ezion suspended trading of its shares because of financial problems, prompting observers…