STI weakens for second straight day

Index falls 16.56 points amid selloff in China shares and depressed Dow futures, with OCBC leading the banks lower

THE simple reason for the Straits Times Index's 16.56-point loss at 2,603.4 on Thursday was that it was in response to a 6.4 per cent fall in the Shanghai Composite and weakness in the Dow futures which signalled a down session for Wall Street ahead.

An equally possible explanation however, was that the short-covering bounce of the past fortnight had run its course, opening the door to a fresh bout of selling as traders capitalised on weak sentiment and oil-related recession fears.

Whatever the explanation,...

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