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Glitch in STI causes Singapore market to be in limbo
By Azhar Khalid, Channel NewsAsia | Posted: 07 December 2009 1442 hrs
SINGAPORE: The Singapore stock market was in a limbo on Monday 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 that the STI may not reflect the movements in its component stocks.
SGX said it has raised 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 said 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.
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: "The big boys do not want to get caught by the market uncertainty and are staying out of the market for now."
- CNA/yb
By Azhar Khalid, Channel NewsAsia | Posted: 07 December 2009 1442 hrs
SINGAPORE: The Singapore stock market was in a limbo on Monday 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 that the STI may not reflect the movements in its component stocks.
SGX said it has raised 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 said 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.
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: "The big boys do not want to get caught by the market uncertainty and are staying out of the market for now."
- CNA/yb
