Singapore shares fall 0.69% on Monday, tracking regional losses

SINGAPORE - Shares in Singapore fell on Monday, tracking losses in most major markets in the region after a sell-off on Wall Street last Friday.

The benchmark Straits Times Index (STI) slipped 21.9 points or 0.69 per cent to 3,163.89. Decliners outnumbered advancers 340 to 231, as one billion securities worth $713.1 million changed hands.

Key major markets in Asia finished the trading day in a sea of red. Japan’s Nikkei 225 led the day’s decline after the index slipped 2 per cent, while the ASX 200 dipped 0.4 per cent. Bursa’s KLCI declined 0.4 per cent, the Kospi fell 0.8 per cent, and the Hang Seng Index dropped nearly 1 per cent.

Analysts observed that markets could be reacting to the recent geopolitical tensions as the Israel-Hamas war rages on.

Such a fear could also be the reason for a surge in gold prices, said Mr Stephen Innes, SPI Asset Management’s managing partner. “Fear is contagious; and when it comes to geopolitical crises, gold traders seldom let a big one pass,” he said.

“When fear intensifies, investors tend to increase their allocation to gold within their portfolios, resulting in higher prices,” he added, noting that gold is traditionally considered a safe haven asset.

“In the current macro context, the impact of fear of war in the Middle East on gold investment demand outweighs the opportunity cost of holding gold, typically measured by short-term US interest rates.”

Unsurprisingly, gold exchange-traded funds on the Singapore Exchange were the top gainers on Monday.

Most large-cap stocks ended the day lower, led by Jardine Matheson and Jardine C&C. Jardine Matheson shares fell 86 US cents, nearly 2 per cent, to US$42.88, while Jardine C&C dropped 40 cents, or 1.3 per cent, to $30.15.

Two of the local lenders also finished in the red – DBS slipped 1 per cent to $33.44 and UOB fell 0.7 per cent to $28.13. OCBC closed 0.2 per cent higher at $13.

Seatrium, Genting Singapore and Rex International were among the most actively traded stocks for the day.

Seatrium fell 1.6 per cent, or 0.2 cent to 12.4 cents; Genting and Rex International both rose 0.6 per cent to 84.5 cents and 18.4 cents respectively.