Glitch in STI causes Singapore market to be in limbo
this morning
The Singapore stock market was in a limbo this morning as
investors and traders stayed out of the market due to a glitch in
the widely-followed market barometer, the Straits Times Index
(STI).
The Singapore Exchange (SGX) said in a statement this morning that
the STI may not reflect the movements in its component
stocks.
SGX says it has raise this matter with the manager of the index
calculator, the FTSE Group, which is still investigating the
matter.
The glitch also affected the FTSE ST index series, such as the FTSE
ST All Share index, FTSE ST Mid Cap Index and the FTSE ST Small Cap
Index.
SGX says that it takes a serious view of this situation and is
working closely with FTSE to resolve the matter.
Dealers said the market has been quiet and trading of index-linked
stocks has been quite thin since the announcement was made this
morning.
Institutional traders or fund managers, who usually trade
heavyweight stocks, are also said to have stayed on the sidelines
because of the glitch.
A local dealer said that "the big boys do not want to get caught by
the market uncertainty and are staying out of the market for
now."
--938Live