Singapore stocks end lower on news of Biden’s exit from US election; STI down 0.3%

SINGAPORE - Stocks ended lower on July 22, after United States President Joe Biden announced overnight that

he would be ending his re-election campaign,

and endorsed Vice-President Kamala Harris for the role.

The benchmark Straits Times Index (STI) fell 0.3 per cent or 10.3 points to 3,437.26.

Across the broader market, gainers outnumbered losers 290 to 277, with 1.1 billion securities worth $924.1 million changing hands.

Regional markets traded mixed. Japan’s Nikkei 225 lost 1.2 per cent, South Korea’s Kospi Composite Index was down 1.1 per cent and the FTSE Bursa Malaysia KLCI fell 0.9 per cent, but Hong Kong’s Hang Seng Index rose 1.3 per cent.

As Ms Harris steps into the spotlight, markets are set to experience heightened uncertainty, said Mr Nigel Green, chief executive of financial adviser and asset manager deVere Group.

He expects that investors are primarily concerned about whether to continue betting on the “Trump Trade”, which refers to market behaviours and trends that emerged during his presidency, driven by looser fiscal policies, deregulation, higher tariffs and infrastructure spending.

Mr Green said: “If Harris can gain significant traction and pose a credible threat to (Donald) Trump’s lead in the polls, market volatility is expected to persist.”

On the STI, Singtel was the biggest gainer, rising 1 per cent or three cents to $3.05.

DFI Retail Group was the biggest decliner, falling 3.3 per cent or six US cents to US$1.78.

The local banking trio experienced mixed trading. DBS Bank fell 1.3 per cent or 49 cents to $36.20, UOB lost 0.2 per cent or six cents to $32.57, while OCBC Bank was up 0.5 per cent or eight cents to $15.05.

THE BUSINESS TIMES