Singapore shares in the red as investors remain wary over global geopolitical climate; STI down 0.3%

SINGAPORE – Shares here declined on June 20 amid concerns over a possible US strike on Iran and the resulting dangers to oil supplies.

US equity markets were closed for the Juneteenth holiday overnight, so investors here had to look elsewhere for leads and they did not like what they saw.

While news that the US has

delayed any Iranian intervention for two weeks

slightly eased tensions, the uncertainties still pushed stocks lower.

“The worsening global geopolitical weather keeps investors in a cautious mode, and will likely prevent them from taking too much risk before the weekend,” said Swissquote Bank senior analyst Ipek Ozkardeskaya.

The wary mood helped send the Straits Times Index (STI) down 0.3 per cent or 10.75 points to 3,883.43, but across the broader market, gainers beat losers 253 to 203 on solid trade of 1.3 billion securities worth $2.2 billion.

The geopolitical uncertainty did not take much of a toll on regional indexes. While Japan’s Nikkei 225 and Australia’s ASX 200 both slipped 0.2 per cent, the Kospi in South Korea rose 1.5 per cent, Hong Kong’s Hang Seng added 1.3 per cent and Malaysian stocks edged up 0.1 per cent.

The Hang Seng Index is now nearly back to its March 2025 highs after the announcement of the

trade war truce

, noted Morningstar equity market strategist Kai Wang. He added that “tariffs may again rear their ugly head” in the second half of the year, noting: “We could see their consequences and whether earnings are under pressure as there are still headwinds to consumer confidence.”

The STI’s top gainer was conglomerate Jardine Cycle & Carriage, which advanced 3.3 per cent to close at $24.45, while Frasers Logistics and Commercial Trust led the blue-chip losers, falling 2.4 per cent to 81.5 cents. The local banks were mixed: UOB edged up 0.5 per cent to $34.89; OCBC Bank fell 0.6 per cent to $15.90; and DBS Bank slipped 0.1 per cent to $43.88.

THE BUSINESS TIMES