Singapore stocks track Wall Street declines; STI down 0.1%

SINGAPORE - Singapore shares ended lower on Dec 18, tracking declines on Wall Street.

The benchmark Straits Times Index (STI) lost 0.1 per cent, or 4.87 points, to finish at 4,570.61. Meanwhile, the iEdge Singapore Next 50 Index gained 0.3 per cent, or 4.56 points, to close at 1,436.36.

Across the broader market, losers outnumbered gainers 286 to 236, after 883.5 million securities worth $1.1 billion changed hands.

Key regional indexes were mixed. The Hang Seng Index added 0.1 per cent and the FTSE Bursa Malaysia KLCI rose 0.3 per cent, while the Nikkei 225 lost 1 per cent and the Kospi Composite fell 1.5 per cent.

Market sentiment was weak after

US jobs data on Dec 16 failed to spark optimism

for more US Federal Reserve cuts in 2026, said Swissquote senior analyst Ipek Ozkardeskaya.

“Inflation remains sticky and above the Fed’s target, making a 1 per cent Fed rate unrealistic without risking a spike in prices for the main street,” she said.

The

artificial intelligence sell-off

also intensified on developments that aggravated investors’ concerns about circularity and leveraged-debt risks, she noted.

“How far the sell-off will go remains unclear, but high valuations could justify a 10 per cent to 20 per cent drop from peak to trough.”

On the STI, DFI Retail Group was the top gainer, climbing 2 per cent, or eight US cents, to US$4.06.

The worst performer was Hongkong Land, which fell 1.7 per cent, or 12 US cents, to US$6.91.

The three local banks ended mixed. OCBC Bank rose 0.3 per cent, or six cents, to $19.50, while UOB was up 0.2 per cent, or seven cents, at $34.73. DBS fell 0.2 per cent, or 12 cents, to $55.12.

THE BUSINESS TIMES