Stocks close flat ahead of FOMC meeting

THE Straits Times Index (STI) drifted within a narrow band before ending a nett 0.48 of a point higher at 2,815.52 on Tuesday, ahead of the US Federal Reserve's Open Market Committee (FOMC) meeting this week at which an interest rate hike is expected to be announced. Turnover was a thin 870.2 million units worth S$860 million; and excluding warrants, there were 184 rises versus 203 falls.

All over the region, trading was similarly cautious as traders waited for confirmation that US rates are to be raised, as well as any guidance from the Fed on future rate hikes. However, helping to provide some support was a 90-point rise in the Dow futures contract which suggested that Wall Street might extend its Monday bounce on Tuesday.

Brokers here spoke of subdued interest not just because of the FOMC meeting but also because of the upcoming holiday season, sliding oil prices and concerns over emerging markets' growth because of China's slowdown.