It was another quiet week for Straits Times Index as there was lack of fresh catalyst to spur market movement. Earnings reporting had come to an end and hence, volatility started to revert back to the usual mode. Trading volume turned out to be the lowest of the past few months. During this week, STI failed to perform bullishly and ended up 23.38pts lower.
Straits Times Index managed to stage a rebound last week as market participants started to digest the impact of Swiber’s fallout. The affected banks openly declared their exposure and plans for Swiber’s fallout. This leads to confidence in the market. Therefore, the banks recovered a little last week. Oil & Gas sector also managed to recover some losses last week.
Straits Times Index continued its bearish streak last week as the market continued to talk on Swiber’s incident. Banks became the main focus of the week as many were speculating on the possible domino effect after Swiber’s fall. DBS, having the largest loan exposure in Swiber, faced an uphill task to be transparent to the market before its earnings announcement on 8 Aug.