STI falls for fifth straight session

THERE were no surprises as far as Monday's trading in the local stock market went, as prices fell in the wake of Friday's Wall Street selloff. Weak oil prices and this week's US Federal Open Market Committee meeting were cited as the main culprits, though persistently weak sentiment towards emerging Asia and the upcoming holiday season also played significant roles.

The Straits Times Index (STI) started the day on the back foot and eventually closed 19.59 points weaker at 2,815.04. It was the index's fifth consecutive loss. Excluding warrants there were only 110 rises versus 310 falls in the broad market, while turnover amounted to 979 million units worth S$916.3 million, of which S$642.4 million or 70 per cent was done in the 30 STI components.

The continuing plunge in oil prices meant big names such as Keppel Corp, Sembcorp and Sembcorp Marine (SMM) have come under intense pressure in recent weeks, with the latter particularly vulnerable after a profit warning a fortnight ago. SMM ended S$0.065 or 3.7 per cent weaker at nearly a seven-year low of S$1.67 on volume of 4.2 million. Keppel in the meantime, slumped to a S$0.14 loss at S$6.22 on turnover of 5.2 million.