Initial optimism over Greek bailout fizzles out

INITIAL optimism about a Greek bailout proposal that lifted the Singapore market early in the week fizzled out in the later half as eurozone officials struggled to break a deadlock despite multiple rounds of talks. A continued correction in Chinese stocks also dampened sentiment.

The Straits Times Index (STI) fell 0.9 per cent or 28.97 points to 3,320.9 on Friday, dragged down by bank stocks ahead of Greece's last-ditch negotiations on Saturday to try and avert a looming default next week.

In the broad market, losers outnumbered gainers 256 to 181, or about seven down for every f…