Daily Markets Briefing: STI down 0.7%

Don't expect gains today.

The Straits Times Index (STI) ended 22.42 or 0.7% lower at 3,160.72.

The top active stocks were DBS, which fell 0.94%, OCBC Bank, which dipped 0.18%, UOB, which went up 0.2%, Singtel, which slipped 0.64%, and YZJ Shipbldg, which declined 2.13%.

According to OCBC Investment Research (OIR), US stocks bounced off intraday lows but still finished lower Thursday as big losses for the technology and energy sectors dragged on the broader market amidst signs that trade tensions between the US and China are escalating.

Nine out of eleven S&P 500 industries ended lower, with the decliners led by Energy (-3.13%) and Information Technology (-1.73%) whilst Utilities (0.82%) and Real Estate (0.51%) gained ground.

“Continued weakness on Wall Street overnight on trade war fears is likely to dampen the sentiment in local bourse further,” OIR said.