Singapore stocks in the red amid regional rout; STI down 0.2%

The Straits Times Index (STI) got off relatively lightly, however, falling 0.2 per cent or 6.82 points to 3,300.04. PHOTO: ST FILE

SINGAPORE – A surprising rout on Wall Street overnight sparked similar declines here, with red ink from one end of the region to the other.

The Straits Times Index (STI) got off relatively lightly, however, falling 0.2 per cent, or 6.82 points, to 3,300.04. In the broader market, losers outpaced gainers 304 to 246 after 1.7 billion shares worth $1.3 billion changed hands.

Major Asian markets were also in the deficit column on Wednesday. Japan’s Nikkei 225 fell 1.3 per cent, Hong Kong’s Hang Seng Index shed 0.5 per cent, and South Korea’s Kospi declined 1.7 per cent, Australian shares slipped 0.3 per cent.

The slides were triggered by Wall Street’s worst session in 2023, after traders became spooked by fears that higher interest rates may be causing more economic damage than first feared.

The S&P 500 fell 2 per cent on Tuesday – its sharpest drop since the December sell-off – while the Dow Jones Industrial Average lost 2.1 per cent and the Nasdaq dived 2.5 per cent.

IG market analyst Yeap Jun Rong noted that US two- and 10-year yields rose overnight, after the flash United States purchasing managers’ index showed higher-than-expected figures.

“The recent stream of economic data has been pointing towards resilience in US economic conditions,” he said.

“While the narrative has been one of ‘no landing’ as opposed to the previous ‘hard landing’, interest rate expectations are also seeing a hawkish recalibration as a result.”

Yangzijiang Shipbuilding was the STI’s top gainer for the second day in a row, rising 3.1 per cent to close at $1.35.

Mapletree Logistics Trust was at the other end of the spectrum, shedding 1.8 per cent to $1.66.

The trio of local banks ended with mixed results. UOB was the sole gainer, rising 1.1 per cent to $30.99, but DBS dropped 0.6 per cent to $34.66, and OCBC fell 1.1 per cent to $12.90. THE BUSINESS TIMES

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