Straits Times Index reacted bearishly

It had been a pretty exciting week for Straits Times Index as market watchers are waiting for the expected interest rate hike in US. The expectations were fulfilled and new expectations were established. Many are looking forward towards further hike to happen in coming quarter. Usually, when expectations are met, the market will adopt the “sell on news” effect. This time round, our market reacted according to this effect. There were bullish anticipation during the early week but it was quick to be brought down by sellers whom think that the interest rate hike is being over-rated. After the hike announcement on Wednesday night, STI reacted bearishly the next day. The sellers had taken over the market which calls for further bearish pressure. Therefore, STI ended with 22.75pts down, ending at 3231.44 level.

Will bearish movements continue to dominate the market next week? …