Singapore shares slip on concerns that tariff pause would end soon, but STI still up for the week
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Despite the decline, the STI still rose 1.2 per cent over the week and has closed above 4,000 points for three days straight.
PHOTO: BT FILE
Tay Peck Gek
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SINGAPORE – Local shares retreated on July 4 over concerns that Asia’s export-driven economies will be hit when the 90-day pause in US tariffs ends.
The unease left the Straits Times Index (STI) down 0.2 per cent, or 5.95 points, at 4,013.62. Decliners beat gainers 282 to 192 in the broader market, with 1.3 billion securities worth $1.1 billion transacted.
Despite the decline, the STI still rose 1.2 per cent over the week and has closed above 4,000 points for three days straight.
SPI Asset Management managing partner Stephen Innes said Asian markets slipped into July 4 “like someone entering a dark alley with one eye over their shoulder”.
He noted that US equities might have “danced higher on a sweet spotted post-payroll sugar rush”, given the buoyant jobs data, but Asian economies are facing the tariff threat with President Donald Trump saying he will be sending trading partners letters about the levies.
“Asian equities pulled back as traders braced themselves for impact. It’s not panic yet – but it’s certainly not confidence either. No one wants to be holding risk when that first letter gets sent.”
All but one property player on the STI closed in the red after the Government announced that seller’s stamp duty rates will be raised for residential properties. The holding period governed by the duty has also been extended to four years.
Only CapitaLand Investment was spared from the rout, with the real estate investment manager’s shares ending unchanged at $2.71.
Frasers Centrepoint Trust was the worst performing STI developer, sliding 2.2 per cent to $2.22, despite not operating in the residential property sector.
The uncertainty here was in stark contrast to Wall Street, which had a shortened session overnight before the July 4 holiday.
The stronger-than-expected June jobs report drove the S&P 500 and Nasdaq up between 0.8 per cent and 1 per cent to new highs for the third time in the week. The Dow industrials added 0.8 per cent. THE BUSINESS TIMES
