The Straits Times Index failed to break the strong resistance level of 2880 last week. Caused by streams of concerns on interest rates issues of Japan and US, market participants decided to take the safer route by exiting the market. BOJ interest rate policy is backed to the limelight as many are pondering on the effectiveness of the negative interest rate hikes.
Concerns of US interest rate hike had escalated last week as US economic data are showing stronger numbers over the week. Straits Times Index did not react positively to such information. Selling pressure was seen throughout the week which pushed STI beyond its 3 weeks support level at 2830 level.
Trading volume diminished for another week as market participants continued to stay out of the market in the midst of uncertain market condition. Many were waiting for an answer of the period US Fed their interest rate increment. Yellen was set to speak on Friday night which the market eagerly anticipated. During this week, Singapore’s ex-president SR Nathan passes away.