Singapore shares, STI continue to tumble on April 9

SINGAPORE – Shares here and across the region continued to free-fall on April 9 in the wake of market turmoil unleashed by the Trump tariffs.

Investor concerns sent the Straits Times Index (STI) sliding 2.2 per cent, or 75.78 points, to 3,393.69 with losers outstripping gainers 414 to 203 on trade of two billion shares worth $2.9 billion.

The local banks continued falling. DBS Bank slid 2.2 per cent to $37.16, OCBC Bank dived 2.6 per cent $14.42, while UOB plunged 3.6 per cent to $30.99.

IG market strategist Yeap Jun Rong said the STI’s concentration on banking stocks is a headwind. The banking sector makes up over 50 per cent of the index’s weight, making the STI sensitive to shifts in US Federal Reserve policy, with investors pricing in four rate cuts in 2025.

“Any deterioration in growth conditions could also create a more challenging environment for the banks – in terms of weaker loan demand, tighter net interest margins, higher credit risks and softer wealth management activities.”

The biggest STI gainer was Singtel, up 1.2 per cent to $3.40. Mapletree Logistics Trust led the losers, down 8.7 per cent to $1.05.

There was more gloom on Wall Street overnight. The Dow surged in early trade on hopes of potential trade deals but that optimism faded and it lost 0.8 per cent to a 52-week low. The S&P 500 fell 1.6 per cent and the Nasdaq retreated 2.2 per cent.

Most regional bourses fell, with the Kospi in Seoul down 1.7 per cent, the Nikkei 225 in Tokyo 3.9 per cent and the ASX 200 in Sydney 1.8 per cent. But Hong Kong’s Hang Seng rose 0.7 per cent.

Mr Yeap said Singapore equities might see a near-term bounce on positive news; but the STI’s plunge to a new low since September 2024 could threaten a shift in market structure and lead to further falls.

THE BUSINESS TIMES