Singapore stocks end lower, as bearish sentiment builds across region

SINGAPORE – Local stocks slipped on May 21 as the Singapore market was not spared from the mounting gloom across South-east Asian indexes and market traders.

The benchmark Straits Times Index (STI) shed 0.2 per cent, or 6.15 points, to close at 3,307.90.

Across the broader market, decliners outnumbered advancers 330 to 245, after 1.2 billion securities worth a collective $920.8 million changed hands.

It was a sea of red across the region, as traders took to capital markets with caution against a backdrop of uncertainty about interest rates.

The Nikkei 225 lost 0.3 per cent, the Hang Seng Index tumbled 2.1 per cent and the Bursa shed 0.3 per cent. The Kospi fell 0.7 per cent and the ASX 200 edged down 0.2 per cent.

On the STI, the Singapore Exchange was the top constituent gainer by dollar value on May 21, gaining 2.5 per cent to close at $9.45. Venture Corp was another top gainer, rising 1.6 per cent to $14.23.

On the other end of the spectrum, incumbent constituent Jardine Matheson Holdings was the biggest index loser, shedding 1.8 per cent to US$39.11.

The trio of local lenders also ended the day in the red. DBS Bank fell 0.3 per cent to $35.68, OCBC Bank lost 0.2 per cent to $14.38 and UOB was down 0.03 per cent to $30.23.

Principal Asset Management chief global strategist Seema Shah said the strong growth and earnings figures in the US are making it easier for investors to digest cues from the Federal Reserve, which indicate that markets “might not get the additional tailwind of rate cuts as soon as anticipated this year”.

She added that the Fed’s series of rate hikes has led to a “bifurcation in the economy”, where higher-income earners benefit from passive income growth, and lower-income households feel the pinch.

“Investors need to be aware of this dynamic when making investment decisions,” she said.

THE BUSINESS TIMES