Stocks weaken ahead of key US jobs report

THE Straits Times Index (STI) on Thursday initially rebounded from three straight days of falls by gaining as much as 12 points, though the thin volume didn't lend much confidence to the bounce's sustainability. As it turned out, even a 50-point rise in the Dow futures was unable to keep the STI's upward momentum going and by 5pm, the index had drifted to a net loss of 4.12 points at 2,816.47 on the day.

Turnover has been below average for several weeks now and remained poor at 987 million units worth S$851.3 million, of which S$582 million or 68 per cent was done in the 30 STI components. Excluding warrants, there were 154 rises versus 218 falls throughout.

Much of the caution evident in trading was said to be because of Friday's release in the United States of the August jobs report which, if stronger than expected, would increase the likelihood of an interest-rate hike soon.