Singapore Stocks Suffered a Bloodbath Last Friday: How Should Investors React?
The Straits Times Index (SGX: ^STI), or STI, had been performing reasonably well this year until President Trump announced sweeping tariffs.
As the US market plunged for two days in a row, the S&P 500 Index suffered a correction while the technology-heavy NASDAQ Composite Index plunged into a bear market.
The STI was not spared, either, as it fell nearly 3% in its biggest one-day drop since the pandemic.
Investors are naturally worried about the effects of these tariffs as they reverberate across the globe.
How should investors react to this news? Should you sell all your stocks?
The three local banks bore the brunt of the sell-off.
DBS Group (SGX: D05) tumbled nearly 4.9% to S$43.30 while United Overseas Bank (SGX: U11) fell 3.9% to S$35.46.
OCBC Ltd (SGX: O39) saw its share price slide 2.8% to S$16.62.
Shipbuilders, which are highly exposed to global trade, also slumped in tandem with the bellwether blue-chip index's decline.
Nam Cheong (SGX: 1MZ), a marine group specialising in the construction of offshore support vessels, saw its share price plunge 8.4% to S$0.53.
Yangzijiang Shipbuilding (SGX: BS6) slid 4% to S$2.17 while Seatrium (SGX: 5E2) fell 3% to S$1.94.
Although semiconductors were spared from the tariffs for now, analysts believe that the sector could be subject to another round of tariffs for specific products.
AEM Holdings (SGX: AWX) tumbled 3.1% to S$1.24 while UMS Integration (SGX: 558) saw its share price decline 2.8% to S$1.03.
Fast-growing companies such as iFAST Corporation (SGX: AIY) were not spared from the carnage.
The fintech saw its share price fall 4.1% to S$6.93 as investors fret over the pace of inflows following the comprehensive tariff announcement.
With the US market suffering a second day of selling as China announced retaliatory tariffs of 34% on all US imports, Singapore could be in for another bout of selling when the markets open on Monday.
The latest, and thus far most comprehensive, salvo from Trump seeks to upend years of free trade.
It's still early days as countries reel from the impact of these punishing tariffs.
Supply chains will be impacted and companies need time to assess the impact of these additional taxes.
These tariffs are sure to increase the cost of production and distribution and cause significant disruption to many businesses' plans.
There is also significant uncertainty as to how each country will respond to these tariffs, which are set to take effect on 9 April.
Larger economies may choose to retaliate the slam the US with its own set of tariffs while smaller nations may choose to negotiate and broker a different arrangement.
Trump says he is 'open to negotiations', signalling that these tariffs are not final and could be used as a bargaining tool for the US to gain the upper hand.
No one knows what the next move will be for the notoriously unpredictable Trump, but investors are fearing a worst-case scenario where a widening trade war may trigger a global recession.
In situations like these, it's recommended that investors keep a level head and continue to monitor and assess the developments.
While fear and panic are natural emotions that you will experience in the face of growing uncertainty, the last thing you want to do is to sell all your stocks.
Remember to check your investment thesis as to why you purchased these stocks in the first place.
Companies with strong brands, sturdy business models and pricing power should eventually rise above these tariffs and stand tall above their competition.
Yes, there will be a lot of short-term pain as companies react and adjust to the new reality of a possible trade war.
But what you, as an investor, should do is carefully monitor companies' commentaries to see how they are coping with the tariffs and the strategies they intend to use to mitigate their impact.
Stock markets go through various types of crises regularly.
There was the global financial crisis back in 2008-2009 which was triggered by sub-prime mortgages.
More recently, the pandemic also triggered a bear market as uncertainty reigned in 2020 over whether the COVID-19 virus could decimate the population.
Throughout these crises, the market plunged and then recovered as strong companies continued to soldier on.
Trump's tariffs are turning out to be a different type of crisis.
As investors, you should keep calm, assess the situation, and continue to monitor the companies within your portfolio.
With patience and tenacity, you can get through this crisis, just like how the previous ones were eventually resolved.
First-time investors: We've finally released our beginner's guide to investing. Read it in an afternoon, follow the principles, pick an investing style and buy your first SGX stocks within the next few hours! Click here to download it for free.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of DBS Group and iFAST Corporation.
The post Singapore Stocks Suffered a Bloodbath Last Friday: How Should Investors React? appeared first on The Smart Investor.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Diamondback Energy (FANG) Rises Higher Than Market: Key Facts
In the latest trading session, Diamondback Energy (FANG) closed at $145.57, marking a +2.42% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%. The energy exploration and production company's stock has dropped by 0.55% in the past month, falling short of the Oils-Energy sector's gain of 3% and the S&P 500's gain of 6.29%. The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.72, reflecting a 39.82% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.41 billion, indicating a 37.23% upward movement from the same quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.23 per share and a revenue of $14.05 billion, representing changes of -20.16% and +26.94%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.89% lower within the past month. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold). In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 10.74. This denotes a premium relative to the industry's average Forward P/E of 10.64. We can additionally observe that FANG currently boasts a PEG ratio of 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 2.42 at the close of the market yesterday. The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 178, placing it within the bottom 28% of over 250 industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Associated Press
21 minutes ago
- Associated Press
Judge tosses lawsuit over Trump's firing of US African Development Foundation board members
A federal judge has tossed out a lawsuit over President Donald Trump's dismantling of a U.S. federal agency that invests in African small businesses. U.S. District Judge Richard Leon in Washington, D.C., dismissed the case on Tuesday, finding that Trump was acting within his legal authority when he fired the U.S. African Development Foundation's board members in February. In March, the same judge ruled that the administration's removal of most grant money and staff from the congressionally created agency was also legal, as long as the agency was maintained at the minimum level required by law. USADF was created as an independent agency in 1980, and its board members must be confirmed by the U.S. Senate. In 2023, Congress allocated $46 million to the agency to invest in small agricultural and energy infrastructure projects and other economic development initiatives in 22 African countries. On Feb. 19, Trump issued an executive order that said USADF, the U.S. Institute of Peace, the Inter-American Foundation and the Presidio Trust should be scaled back to the minimum presence required by law. At the time, USADF had five of its seven board seats filled. A few days later, an administration official told Ward Brehm that he was fired, and emails were sent to the other board members notifying them that they had also been terminated. Those emails were never received, however, because they were sent to the wrong email addresses. The four board members, believing they still held their posts because they had not been given notice, met in March and passed a resolution appointing Brehm as the president of the board. But Trump had already appointed Pete Marocco as the new chairman of what the administration believed to now be a board of one. Since then, both men have claimed to be the president of the agency, and Brehm filed the lawsuit March 6. Leon said that even though they didn't receive the emails, the four board members were effectively terminated in February, and so they didn't have the authority to appoint Brehm to lead the board. An attorney for Brehm did not immediately respond to a request for comment. Another lawsuit over the dismantling of the agency is still pending before the same judge. In that case, two USADF staffers and a consulting firm based in Zambia that works closely with USADF contend that the Trump administration's efforts to deeply scale back the agency wrongly usurps Congress' powers. They also say Marocco was unlawfully appointed to the board, in part because he was never confirmed by the Senate as required. Leon's ruling in Brehm's case did not address whether the Trump administration had the power to install Marocco as board chair on a temporary basis.
Yahoo
22 minutes ago
- Yahoo
Bessent Returns to Washington as US-China Talks Stretch On
(Bloomberg) — SUS Treasury Secretary Scott Bessent departed trade talks with China late Tuesday in London, as delegations continued to negotiate over key tech and industrial exports and deescalating their trade war. Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NY Long Island Rail Service Resumes After Grand Central Fire NYC Mayoral Candidates All Agree on Building More Housing. But Where? Senator Calls for Closing Troubled ICE Detention Facility in New Mexico California Pitches Emergency Loans for LA, Local Transit Systems Bessent told reporters he had to return to Washington in order to testify before Congress. US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer planned to continue discussions with their Chinese counterparts 'as needed,' Bessent said. 'We have had two days of productive talks, they are ongoing,' the Treasury secretary said before leaving Lancaster House, a Georgian-era mansion near Buckingham Palace serving as the meeting site. Financial markets were closely watching Tuesday as the world's largest economies continued talks over the terms of their tariff truce brokered last month. US stocks rose to session highs after Lutnick said earlier the talks were 'going really, really well.' The teams, which had been led by Bessent and Chinese Vice Premier He Lifeng, were still holding discussions Tuesday night in order to iron out technical details, according to a Treasury official. The key issue this week is re-establishing terms of an agreement reached in Geneva last month, in which the US understood that China would allow more rare earth shipments to reach American customers. The Trump administration accused Beijing of moving too slowly, which threatened shortages in domestic manufacturing sectors. In return, the Trump administration is prepared to remove a recent spate of measures targeting chip design software, jet engine parts, chemicals and nuclear materials, people familiar with the matter said. Many of those actions were taken in the past few weeks as tensions flared between the US and China. 'Win by China' 'A US decision to roll back some portion of the technology controls would very much be viewed as a win by China,' said Dexter Roberts, nonresident senior fellow at the Atlantic Council's Global China Hub, adding that the possibility of unwinding 'any controls' seemed 'pretty much unthinkable' until recently. A month ago Beijing and Washington agreed to a 90-day truce through mid-August in their crippling tariffs to allow time to resolve many of their trade disagreements — from tariffs to export controls. Lancaster House carries historical significance. It has hosted major addresses by UK prime ministers, speeches by central bank governors and parties for Britain's royal family. At the same time, Trump's trade team is scrambling to secure bilateral deals with India, Japan, South Korea and several other countries that are racing to do so before July 9, when the US president's so-called reciprocal tariffs rise from the current 10% baseline to much higher levels customized for each trading partner. Meanwhile, Chinese President Xi Jinping on Tuesday held his first phone conversation with South Korea's newly elected President Lee Jae-myung and called for cooperation to safeguard multilateralism and free trade. 'We should strengthen bilateral cooperation and multilateral coordination, jointly safeguard multilateralism and free trade, and ensure the stability and smoothness of global and regional industrial chains and supply chains,' Xi said, according to the CCTV report. —With assistance from Colum Murphy and Stephanie Lai. New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling ©2025 Bloomberg L.P.