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