Singapore shares in the red as regional indexes fall; STI retreats 0.3%

SINGAPORE - Equities in Singapore closed Feb 25 in the red, tracking regional losses.

The benchmark Straits Times Index (STI) fell 0.3 per cent or 11.88 points to 3,915.87.

Across the broader market, decliners beat gainers 326 to 234, as 1.6 billion securities worth $1.8 billion changed hands.

Key regional indexes declined across the board.

Hong Kong’s Hang Seng Index was down 1.3 per cent and Japan’s Nikkei 225 retreated 1.4 per cent.

South Korea’s Kospi Composite Index lost 0.6 per cent. The Bursa Malaysia Kuala Lumpur Composite Index contracted 1 per cent.

Mr Vis Nayar, chief investment officer of Eastspring Investments, said the University of Michigan’s February consumer survey indicates that US President Donald Trump’s tariff announcements will produce lasting inflation, instead of a one-off increase in prices.

“If higher inflation expectations persist in concert with tariffs pushing inflation higher, the US Federal Reserve could be constrained in cutting rates even if consumption growth slows,” he said in a note.

In Singapore, the top gainer on the STI was Mapletree Logistics Trust, which added 1.6 per cent or two cents to $1.24.

The blue-chip barometer was dragged by Yangzijiang Shipbuilding, which extended losses by 9.7 per cent or 29 cents to $2.70.

The counter’s decline comes after the Office of the US Trade Representative proposed slapping fees on Chinese-built vessels entering US ports.

Local banking stocks were mixed.

DBS Bank added 0.4 per cent or 20 cents to $46.55, while UOB lost 0.4 per cent or 15 cents to $38.20.

OCBC Bank fell 0.5 per cent or nine cents to $17.60 ahead of its results announcement on the morning of Feb 26.

THE BUSINESS TIMES