STI rises 0.1% despite US big tech sell-off

SINGAPORE – Local shares limped higher on Aug 20 as nervy investors kept a wary eye on the tech sell-off on Wall Street overnight.

The cautious mood left the benchmark Straits Times Index (STI) up just 0.1 per cent or 3.35 points at 4,219.54 with gainers edging out losers 277 to 256 on subdued trade of 1.48 billion securities worth $1.49 billion.

Wall Street injected some anxiety into local trade after falls in big-tech shares sent the Nasdaq down 1.5 per cent as investors switched out of the sector.

It was the Nasdaq’s biggest fall in August and left long-time market favourites Nvidia 3.5 per cent lower and Oracle off 5.8 per cent.

The S&P 500 took a hit as well, declining 0.6 per cent, while the Dow industrials added a paltry 0.1 per cent.

Major regional indexes were mixed. South Korea’s Kospi fell 0.7 per cent, Japan’s Nikkei 225 slipped 1.5 per cent and Malaysian shares dipped 0.1 per cent but the ASX 200 in Sydney eked out a 0.3 per cent gain despite a 28 per cent plunge in buildings material giant James Hardie.

The STI’s top gainer was real estate developer Hongkong Land, up 2.5 per cent to US$6.11, while Jardine Matheson Holdings led the losers, down 2.2 per cent to US$58.15, after being the biggest blue-chip winner on Aug 19.

The local banks all rose: DBS added 0.28 per cent to $50; UOB advanced 0.43 per cent to $35; and OCBC put on 0.78 per cent to $16.89.

Swissquote Bank senior analyst Ipek Ozkardeskaya said: “The sell-off across US big tech names dampened the market mood, triggered largely by mounting doubts over the AI boom.”

She noted the weakness that hit the Nasdaq overnight, adding that investors are pivoting to defensive sectors such as utilities, real estate and consumer staples – a sign that they are banking on stocks that stand to benefit most from lower interest rates.

THE BUSINESS TIMES