Singapore bourse among the least hit in region by US tariff tsunami; STI down 0.3%
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Investors, taking grateful note that Singapore was hit with the lowest duty of 10 per cent, kept their heads during the trading session on April 3.
PHOTO: ST FILE
Tay Peck Gek
SINGAPORE – Local shares escaped relatively unscathed from the carnage unleashed on world stock markets by sweeping Trump tariffs that threaten to upend global trade.
Investors, taking grateful note that Singapore was hit with the lowest duty of 10 per cent, kept their heads during the trading session on April 3.
The “keep calm and carry on” approach left the Straits Times Index (STI) down just 0.3 per cent or 11.98 points at 3,942.23, although losers thumped gainers 329 to 216 on robust trade of 1.3 billion securities worth $1.9 billion.
Wall Street had another volatile session overnight before the three key indexes rose by around 0.7 per cent, but futures trading indicated sharp falls to come.
Major regional markets took a sizeable hit. The Nikkei in Tokyo dived 2.8 per cent, the Kospi in Seoul fell 0.8 per cent, Hong Kong’s Hang Seng was down 1.5 per cent and Australian shares lost 0.94 per cent after halving losses during the day.
But the Shanghai Composite was surprisingly resilient, slipping just 0.2 per cent, despite China being slapped with a 34 per cent reciprocal tariff on top of earlier levies.
OCBC Global Markets Research said Singapore’s 10 per cent tariff is a “silver lining”, since it is “relatively mild” compared with the duties imposed on China, Vietnam and many other Asean countries.
“Singapore’s resilience will depend on how well it adapts to shifting trade flows, potentially benefiting from companies diversifying away from the more heavily tariffed countries, while managing broader economic uncertainties and financial market volatility,” it added.
OCBC Bank closed down 0.8 per cent to $17.09 after announcing plans to deploy £10 billion (S$17.4 billion) in financing to support foreign direct investment into Britain. The other banks also slid: UOB declined 1.8 per cent to $36.88, and DBS Bank was down 1.1 per cent at $45.52.
China-based Yangzijiang Shipbuilding was the STI’s worst performer, finishing 3.8 per cent lower at $2.26. THE BUSINESS TIMES
