Singapore shares slide ahead of Trump’s tariffs; STI down 0.4%

SINGAPORE – Local shares drifted down on April 2 as nervous investors here and elsewhere went into defensive mode ahead of the expected raft of United States tariffs against its trading partners. The uncertainty sent the Straits Times Index down 0.4 per cent, or 14.64 points, to 3,954.21, with just eight of the 30 blue-chip constituents closing higher. In the broader market, losers beat gainers 251 to 231 on trade of 1.1 billion securities worth $1.4 billion.

The session’s tone was set by Wall Street, where stocks veered wildly overnight as investors tried to second-guess the Trump stance on tariffs. The S&P 500 rose 0.4 per cent and the Nasdaq added 0.9 per cent, but the Dow Jones Industrial Average edged down less than 0.1 per cent.

Regional bourses were equally mixed as traders positioned themselves before the so-called “Liberation Day” tariff announcement.

The Shanghai index, Japan’s Nikkei 225 and Malaysian shares all ended the day slightly higher, while Hong Kong’s Hang Seng and the Kospi in South Korea both closed in the red. Australia’s ASX 200 inched up as investors seeking safe havens ahead of the tariff announcement piled into property stocks.

Private bank LGT noted that the expected reciprocal tariffs are likely to match the levy rates of the US’ major trading partners, as well as to counteract non-tariff barriers. The new duties will likely take immediate effect.

Meanwhile, Singapore property player Wee Hur closed down 2.9 per cent at 50 cents, despite announcing a special dividend of seven cents a share.

The payout announced on April 1 comes after it completed its disposal of a 37.1 per cent stake in a portfolio of purpose-built student accommodation assets in Australia. The special dividend was higher than Phillip Securities Research’s expectations of 6.5 cents.

The local banks had a mixed session. DBS fell 0.15 per cent to $46.04 while UOB slipped 0.4 per cent to $37.57, but OCBC added 0.06 per cent to $17.22.

THE BUSINESS TIMES