Apr 29, 2016

    STI hit by triple whammy, down for 5th straight day

    THE United States Federal Reserve lived up to expectations when it kept interest rates unchanged on Wednesday.

    But the Bank of Japan did not, when it held off on expanding its monetary stimulus yesterday, a surprise development that sent the Nikkei 225 diving 3.6 per cent.

    In addition, oil plunged 2.6 per cent while the Dow futures dropped 150 points.

    Faced with this triple whammy, the Straits Times Index, which yesterday first made a spirited attempt at avoiding a fifth consecutive loss when it initially rallied 26 points to an intraday high of 2,900, saw its advance abruptly halted in the late morning. It eventually ended the day a net 12.42 points weaker at 2,862.30.

    Turnover was average at 1.4 billion units worth $1.06 billion and, excluding warrants, there were 186 rises versus 206 falls.

    There is some hope, however, that conditions may improve today if funds indulge in a spot of month-ending window dressing.