Daily Markets Briefing: STI down 2%

Don’t expect any gains today.

The Straits Times Index (STI) ended 69.98 points or 2% lower to 3421.39, taking the year-to-date performance to +0.54%.

The top active stocks today were Singtel, which declined 1.74%, DBS, which declined 2.56%, OCBC Bank, which declined 2.94%, UOB, which declined 2.70% and Venture, with a 3.56% fall.

The FTSE ST Mid Cap Index declined 1.27%, whilst the FTSE ST Small Cap Index declined 1.43%.

OCBC Investment Research noted that US stocks retreated for a second day, whilst the dollar rallied as investors assessed data on jobs and service industries for clues to the timing of interest-rate increases.

Nine industries of the S&P 500 closed down, with Telecommunication Services (-1.12%) leading the laggards whilst Health Care (0.40%) gained.

“The continued correction on Wall Street overnight is likely to weigh further on local sentiments this morning,” OCBC said.