US rate fears trim STI's gain for the week

COMMENTS by US Federal Reserve chair Janet Yellen on Wednesday about moving ahead with the interest rate hikes "in a timely fashion" because it is "the prudent thing to do" weighed on stocks here, dragging the Straits Times Index (STI) lower on Thursday and Friday.

These losses ate into gains made earlier in the week, resulting in the index recording a net gain of just 12 points at 3,010.47. All throughout, volume was low, Friday's 1.1 billion units worth S$743.3 million when the STI dropped 13.18 points being a typical example. Of this, S$456 million (61 per cent) came from trading in the 30 STI stocks, leaving the rest of the market - almost 800 counters - to contribute towards trade in 942 million units worth S$287 million.

The three banks reported their third-quarter figures during the week, in results which were broadly in line with expectations. Analysts have expressed concern over asset quality, non-performing loans and the impact rising interest rates would have on bank figures; over the five days, DBS gained S$0.13 at S$17.40, UOB also rose S$0.13 to S$20.46 and OCBC added S$0.04 at S$9.07. But all three fell on Friday.