Singapore: STI drops 35 points after US selloff

ON the plus side was that volume amounted to 1.6 billion units worth S$1.3 billion, much better than the dismal S$597 million done at the start of the week.

On the minus side, however, was that the volume spike signified increased selling which ended with the Straits Times Index losing 35.04 points or just over one per cent at 3,424.94.

On the plus side the STI was still in positive territory for the year so far. On the minus side though, the gain for the year has now been shaved to 60 points or 1.8 per cent.

Wall Street's overnight plunge was said to be the reason for the heightened selling that saw the broad market excluding warrants chalk up 285 falls against 171 rises. That fall reportedly came after release of a strong durable goods report, which supposedly raised the likelihood of an earlier-than-expected interest rate hike.

Business done in the 30 STI components amounted to 262 million units worth a hefty S$830 million, which in dollar terms amounted to 64 per cent of total volume. Penny stocks were also active as traders churned the second and third line for value; however, there were only limited successes to report on this front.