Daily Markets Briefing: STI down 1.7%

Emerging market concerns could weigh on local sentiment.

The Straits Times Index (STI) ended 1.7% lower at 3156.28.

The FTSE ST Mid Cap Index slipped 0.74%, whilst the FTSE ST Small Cap Index fell 1.11%.

OCBC Investment Research noted that US stocks closed mostly lower Wednesday with the technology sector logging its worst single-day decline since late July, triggering an outsize drop in the Nasdaq.

Three out of eleven S&P 500 index closed lower, led by Information Technology (-1.50%) and Consumer Discretionary (-1.10%) whilst Utilities (1.27%) and Consumer Staples (1.18%) led the gains.

"The lacklustre performances on Wall Street overnight and the ongoing concerns about emerging markets are likely to weigh on local sentiment today," OIR said.