Singapore shares fall even as most regional markets rebound
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The STI closed down 2 per cent or 71.03 points at 3,469.47.
ST PHOTO: LIM YAOHUI
Benjamin Cher
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SINGAPORE - The Straits Times Index (STI) settled lower on April 8, disregarding the rebound across regional indexes. The STI closed down 2 per cent or 71.03 points at 3,469.47.
The trio of local banks continued to tumble. DBS Bank declined 3.3 per cent or $1.28 to $38, and UOB also fell 3.3 per cent or $1.10 to $32.13. OCBC Bank was the biggest loser on the benchmark index, decreasing 4.3 per cent or 66 cents to $14.81.
The top gainer was Sembcorp Industries, settling up 7.6 per cent or 44 cents at $6.23.
Across the broader market, advancers outnumbered decliners 362 to 234, with 2.35 billion shares worth $3.49 billion changing hands.
Most major indexes across the region rebounded. The Kospi ticked up 0.3 per cent, the Nikkei 225 rose 6 cent and Hong Kong’s Hang Seng Index gained 1.5 per cent. The KLCI largely held, shedding 0.02 per cent.
The markets have been sensitive to any positive tariff news, with a 3 per cent knee-jerk reaction to a possible 90-day pause, said Mr Yeap Jun Rong, market strategist at IG. This represents a deeply oversold market that could see massive swings on any good news.
As countries begin negotiating with the US over tariffs, some calm has descended on the markets, with the Volatility Index pulling back from its recent high, he added, noting that US tariffs are likely to go into effect as planned and negotiations will take some time, which could translate to some “tough” conditions from the US.
“The ongoing tariff gridlock with China carries the risks for escalation as well, which suggests that the secondary effect of higher tariffs on China on growth will still be felt by trading partners,” said Mr Yeap. THE BUSINESS TIMES
