Singapore stocks end flat on March 14 amid mixed regional finishes

SINGAPORE – Local shares had nowhere to go on March 14 as investors here and elsewhere tried to get a grip on the trade war threats roiling financial markets.

The uncertainty left the Straits Times Index (STI) almost flat, down 0.04 per cent or 1.5 points to 3,836.02, but gainers outstripped losers 338 to 207 on moderate trade of 1.2 billion securities worth $1.3 billion.

Sembcorp Industries was the STI’s biggest loser, falling 2.1 per cent to $5.96, after a deal inked by a subsidiary to import natural gas from Indonesia fell through. Agribusiness Wilmar International led the index, adding 1.9 per cent to $3.30.

The banks were mixed: DBS Bank rose 0.3 per cent to $44.25, but UOB was down 0.5 per cent to $36.71 and OCBC Bank slid 0.2 per cent to $16.48.

Investors did not get much of a boost from Wall Street, which endured another belting overnight.

The S&P 500 plunged 1.4 per cent and is now down more than 10 per cent from its record high on Feb 19.

The Nasdaq dived 2 per cent and the Dow Industrials fell 1.3 per cent.

Regional indexes more or less weathered the storm. Japan’s Nikkei 225 rose 0.7 per cent and the Hang Seng in Hong Kong shot up 2.1 per cent, but South Korea’s Kospi declined 0.3 per cent. Australian shares broke a three-day losing streak to add 0.5 per cent.

These moves came after US President Donald Trump’s tariff threats against the European Union.

Eastspring Investments chief investment officer Vis Nayar and chief economist Ray Farris noted that Mr Trump’s rhetoric indicates “significant and broad tariffs” despite stock market weakness, which could hit US gross domestic product growth.

“This implies continued US equity underperformance, particularly relative to countries where policy is turning expansionary to offset the impact of tariffs,” they said, adding that the US Fed is “likely to be slow to respond” to weaker growth as tariffs could be inflationary.

THE BUSINESS TIMES