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Singapore: Not a good week for stocks as STI drops 1.7% in wake of HK, China selloff
It's been a dismal five days for the local market, perennially living as it does in the shadow of Hong Kong and China and having to endure never-ending comparisons with those two markets, comparisons which typically end unfavourably for Singapore.
Not only that, when Hong Kong and China ran up in huge leaps last month and earlier this month because of the HK-Shanghai connect, prices here hardly reacted. Traders here could only watch in envy at the volume done during that period - in one particular session, business done in Hong Kong was 50 times that done here.
Yet, when the inevitable collapse came this week, the Straits Times Index caved in. Over the week, the STI lost 58 points or 1.7 per cent at 3,392.11, with Friday's session yielding a 25.66 points drop.
Volume however, has improved, though given that the improvement has come with plunging prices, it's not necessarily much of a consolation.
On Monday when Hong Kong was closed for Buddha's birthday, only S$597 million was traded; on Friday 1.8 billion units worth S$2.2 billion was done here, the figures probably also boosted by month-ending "portfolio rebalancing" or if you prefer, window-dressing.
The value per unit traded also crept upwards over the week, from S$0.33 on Monday to S$1.22 on Friday. Excluding warrants, there were 192 rises versus 259 falls.