Singapore shares fall on Monday amid escalating Israel-Iran conflict; STI down 0.1%
SINGAPORE - Stocks on the local bourse ended slightly lower on Jun 16 on the back of escalating tensions between Israel and Iran.
The benchmark Straits Times Index (STI) slid 0.1 per cent or 2.96 points to 3,908.46. Across the broader market, gainers beat losers 246 to 226, after 948.9 million securities worth $1 billion were traded.
The biggest winner on the STI was ST Engineering, which was up 2.1 per cent at $7.96.
At the other end of the index was Singapore Airlines, which fell 1 per cent to S$6.87. The drop comes after shares tumbled on Jun 13 following a crash involving an Air India plane on Jun 12, as SIA holds a 25.1 per cent stake in the Indian carrier.
Meanwhile, local bank counters ended in the red. DBS fell 0.7 per cent to $44.16 while UOB edged down 0.4 per cent at $34.82, and OCBC slid 0.2 per cent S$16.02.
Elsewhere in the region, market sentiment was more positive. South Korea's Kospi and Japan's Nikkei 225 gained 1.8 per cent and 1.3 per cent, respectively. Hong Kong's Hang Seng Index rose 0.7 per cent and the Bursa Malaysia Kuala Lumpur Composite Index was up 0.1 per cent.
Mr Christian Gattiker, head of research at Julius Baer, said that for markets, the Israel-Iran conflict 'remains within the realm of Geopolitical 101: a sharp, but ultimately transient shock – unless escalation accelerates meaningfully from here'.
He noted that unless the situation rapidly expands, such as through a disruption in the Strait of Hormuz, direct US or Saudi Arabia involvement, or widespread proxy engagements, the market is unlikely to adjust beyond the initial risk premium.
Until then, he said it remains a tactical event rather than a strategic one, providing traders with an opportunity to take profits and reassess their positions.
'The key for investors is not just whether the conflict continues, but whether it intensifies in scope or duration,' said Mr Gattiker. THE BUSINESS TIMES
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 hours ago
- Straits Times
Carney, Modi hold talks to reset India and Canada ties after tense two years
Canadian Prime Minister Mark Carney and India's Prime Minister Narendra Modi shake hands before posing for a photo during the G7 Leaders' Summit in Kananaskis, in Alberta, Canada, June 17, 2025. REUTERS/Amber Bracken Carney, Modi hold talks to reset India and Canada ties after tense two years KANANASKIS, Alberta - The leaders of India and Canada on Tuesday held their first bilateral meeting since then-Canadian Prime Minister Justin Trudeau accused New Delhi in 2023 of involvement in the killing of a Canadian Sikh separatist. Relations have been poor for almost two years but there was no sign of tension when Prime Minister Mark Carney warmly welcomed Indian counterpart Narendra Modi to the Group of Seven summit he is chairing in Alberta. India denied Canada's allegations of involvement in the murder, and both nations are looking to shore up global partnerships as trade tensions and wars are recasting long-standing alliances. Carney has previously said he invited India, which is not a G7 member, due to its importance in global supply chains. "It is my great honor to have you here," Carney told Modi, saying their meeting was a "testament to the importance of your country" and the issues they needed to tackle together. These included energy security, artificial intelligence, and the fights "against terrorism" and against transnational repression. Carney did not mention the furor sparked when Trudeau accused India's government of involvement in the murder of Hardeep Singh Nijjar on Canadian soil. Modi did not mention the case either. Speaking through an interpreter, he said the two nations could work together to strengthen democratic values. "I'm sure, under your leadership, we will be able to work together in a positive way," said Modi, paying his first visit to Canada for a decade. India is Canada's top source of temporary foreign workers and international students, as well as an important market. Greg Cherewyk, president of the Pulse Canada industry group, said Canadian farmers hope to export more agricultural products to the world's most populous nation, including lentils. Canada's Sikh community, the largest outside of the Indian state of Punjab, has voiced outrage over Modi's visit, saying Canada should have set conditions before inviting him. A few dozen Sikh protesters in downtown Calgary tore apart Indian flags in protest on Tuesday. Modi's government has denied involvement in the killing and accused Canada of providing a safe haven for Sikh separatists. Last year, Canada expelled six Indian diplomats, linking them to Nijjar's murder and alleging a broader government effort to target Indian dissidents in Canada. Four men have been charged with his murder. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
CNA
14 hours ago
- CNA
India regulator asks Air India for training data of pilots, dispatcher of crashed plane
The Boeing 787-8 Dreamliner bound for London with 242 people on board began losing height seconds after take-off in Ahmedabad on Thursday before crashing into nearby buildings. Everyone on board was killed, bar a single passenger, along with about 30 on the ground. Sumeet Sabharwal, who the Indian government has said had 8,200 flying hours of experience and was also an Air India instructor, was the commanding pilot of flight AI171. His co-pilot was Clive Kunder who had 1,100 hours of experience. Sabharwal's funeral took place in Mumbai on Tuesday. The watchdog requested for training details and supporting documents for the pilots, as well as for the flight dispatcher. The memo did not elaborate on the type of documents required, but accident investigations commonly look at a crew's training and qualifications, flight history, medical records and any actions previously taken against them. The memo did not raise any concerns with Air India's operations and some of the requests are standard in the aftermath of a major incident. Dispatchers are DGCA-certified ground-based airline employees whose role includes flight planning, assessing weather and airspace conditions, and coordination with the pilots. While the request for pilot training data was sent by the DGCA, the accident investigation is being led by another wing of the aviation ministry, the Aircraft Accident Investigation Bureau. Air India's Chairman N Chandrasekaran told staff on Monday the incident should be a catalyst to build a safer airline. The DGCA, through a separate memo dated Jun 16, also asked flying schools across the country to "strictly follow additional safety and operational measures". The regulator said instructors must check for compliance with procedures concerning training, maintenance and licensing, and coordinate flight plans with nearby airports in advance to ensure any emergencies are dealt with swiftly. "Compliance will be assessed during audits/surveillance," said the memo by the Directorate of Flying Training, reviewed by Reuters. Stephanie Pope, the head of Boeing Commercial Airplanes, visited Air India's headquarters near New Delhi and met the airline's chairman to discuss the crash, Reuters reported on Monday. The crash poses a new challenge for Air India, which the Tata Group bought in 2022 and has been trying to revamp, and Boeing, which is trying to rebuild public trust following a series of safety and production crises. In a Jun 13 memo headed "updating airport emergency plan", seen by Reuters, government-managed airports have also been asked to conduct a full-scale training exercise - typically an emergency drill - on Jun 30.
Straits Times
14 hours ago
- Straits Times
Singapore shares rise even as exports in May fall; STI up 0.6%
Across the broader market, advancers edged out decliners 275 to 210, after 1.2 billion securities worth $993.8 million were traded. PHOTO: ST FILE Singapore shares rise even as exports in May fall; STI up 0.6% SINGAPORE - Shares on the local bourse ended higher on Tuesday (Jun 17), even as Singapore's key exports declined 3.5 per cent year on year in May, reversing sharply from April's surge. The benchmark Straits Times Index (STI) rose 0.6 per cent or 22.18 points to close at 3,930.64. Across the broader market, advancers edged out decliners 275 to 210, after 1.2 billion securities worth $993.8 million were traded. The top gainer on the STI was CapitaLand Integrated Commercial Trust (CICT), which rose 1.9 per cent or $0.04 to $2.17. Telco giant Singtel was the biggest decliner, slipping 0.5 per cent or $0.02 to $3.93. The trio of local banks finished in positive territory. DBS rose 0.7 per cent or $0.30 to S$44.46, UOB edged up 0.4 per cent or $0.13 to $34.95, and OCBC climbed 0.4 per cent or $0.07 to $16.09. Elsewhere in Asia, markets ended on a mixed note. Hong Kong's Hang Seng Index slipped 0.3 per cent, Malaysia's FTSE Bursa Malaysia KLCI declined 0.6 per cent, and Australia's ASX 200 edged down 0.1 per cent. In contrast, South Korea's Kospi inched up 0.1 per cent, while Japan's Nikkei 225 gained 0.6 per cent. In Singapore, data released on Tuesday showed that its latest non-oil domestic exports (Nodx) print reversed from the preceding month's 12.4 per cent jump and disappointed market expectations of 7.8 per cent growth. Exports to most major trading partners declined, with both electronics and non-electronics shipments weakening. The data suggests some softening in earlier front-loading activity, noted UOB's global economics and markets research team in a report. The bank's associate economist Jester Koh wrote: 'The sluggish Nodx outturn in May did not come as a huge surprise given that there was some evidence that export activity to trading partners were slowing, such as the month-on-month contraction in South Korea's and Taiwan's imports from Singapore for the month of May.' In light of the weaker showing, UOB adjusted its full-year 2025 Nodx forecast downward to a range of 1 to 3 per cent growth, from the earlier projection of 2 to 4 per cent growth, to reflect recent developments. The bank noted reduced confidence in its projections, citing a fluid situation and heightened market attention on the potential impact of 'new' unilateral tariff rates. Koh also cautioned that the payback from earlier front-loading could result in 'a more protracted downturn in trade activity' in the second half of 2025 while 'escalating geopolitical tensions in the Middle East could further dampen business and consumer confidence'. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
