Daily Markets Briefing: STI down 1.2%

Bank stocks led the decline.

According to KGI Fraser Securities, Asian markets saw a bloodbath on Monday, as expected, following the failure in bailout talks between Greece and its creditors.

The closure of the Greek banks till 6 July also sparked a sell off in banks stocks. The STI closed 1.2% lower (-40.72 points) to end at 3280.18 points. All stocks in the index were sold off with the exception of Olam (+0.5%). The biggest movers of the index by weightage were DBS (-1.1%), OCBC (-1.2%) and UOB (-0.9%), accompanied by Jardine Matheson (-2.2%) and CapitaLand (-2.9%).

"As we had warned yesterday, the three local banks were not spared (we think investors could consider buying back banks stocks once the momentum in the sell-off eases). The Chinese markets continued its sell-down along with the rest of Asia even with the PBOC announcing a rate cut on Sunday," said KGI Fraser.