Singapore stocks end lower as investors keep eye on tariff negotiations; STI down 0.4%
Singapore stocks end lower as investors keep eye on tariff negotiations; STI down 0.4%
SINGAPORE – Local investors kept their powder dry on May 8 as global markets await news of a possible trade deal between Britain and the US.
Nerves were also steadied by the much-anticipated decision by Federal Reserve chair Jerome Powell to rule out a pre-emptive rate cut to blunt the impact of tariffs on the US economy.
The upshot was a modest retreat in the Straits Times Index, which fell 0.4 per cent or 17.15 points to 3,848.22 with losers outnumbering gainers 262 to 226 on trade of 1.1 billion securities worth $1.5 billion.
Mapletree Logistics Trust led the losers, declining 4.4 per cent to $1.08, while Venture Corp was the top gainer, rising 0.9 per cent to $11.07.
The local banks were mixed. DBS rose 0.8 per cent to $43.09 after reporting better-than-expected first-quarter results, UOB added 0.2 per cent to $34.55 but OCBC fell 0.7 per cent to $16.16.
The decline here was out of step with Wall Street overnight, where the three key indexes all rose on the interest rate decision.
The S&P 500 added 0.4 per cent, the Dow Industrials advanced 0.7 per cent and the tech-focused Nasdaq gained 0.3 pet cent.
It was much the same elsewhere: Japan's Nikkei and the Hang Seng in Hong Kong added 0.4 per cent while the Kospi in Seoul and Australian shares both gained 0.2 per cent.
Mr Vasu Menon, managing director for investment strategy at OCBC, said the Fed decision means that equity investors cannot expect support from a US rate cut until there is greater clarity about trade negotiations and the impact of tariffs.
Investors are focused on President Trump's trade policies and the effect they will have on the US and global economy, he added, noting that this is likely to be the key driver of the local bourse for now.
'Irrespective, Singapore's stock market is attractively valued, and the local markets should enjoy valuation support,' Mr Menon said. 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
Asia stocks tumble, oil jumps over 6% and gold rallies after Israel strikes Iran
Japan's Nikkei lost 1 per cent and South Korea's Kospi slipped 0.6 per cent. Most other regional markets had yet to open. PHOTO: AFP Asia stocks tumble, oil jumps over 6% and gold rallies after Israel strikes Iran TOKYO - Stocks tumbled in early Asian trade on June 13, led by a sell-off in US futures while safe havens like gold and the Swiss franc climbed along with crude oil prices on news that Israel had conducted a military strike on Iran. US S&P e-mini futures slumped 1.1 per cent as of 0018 GMT and Nasdaq futures skidded 1.3 per cent. Japan's Nikkei lost 1 per cent and South Korea's Kospi slipped 0.6 per cent. Most other regional markets had yet to open. Oil prices jumped on concerns that escalating conflict in the Middle East may affect crude supplies. West Texas Intermediate, the US benchmark, jumped US$4.35, or 6.4 per cent, to US$72.39 a barrel at 0029 GMT, while Brent crude futures were up US$4.02, or 5.8 per cent, at US$73.38 Gold added 0.8 per cent to US $3,410 per ounce. The Swiss franc gained about 0.5 per cent to 0.8060 per US dollar, and fellow safe haven the yen rose 0.4 per cent to 142.89 per dollar. Israel launched airstrikes on Iran, in a major escalation in the standoff over Tehran's nuclear programme that risks sparking a new war in the Middle East. Explosions were heard in Tehran, according to local media. Iran had previously vowed to respond to any attack. Israeli Defense Minister Israel Katz said in a statement he's declaring a special state of emergency due to Israel's 'preemptive strike against Iran.' Israel is anticipating a retaliatory drone and missile attack, Mr Katz said in a statement. REUTERS, BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
4 hours ago
- Business Times
US stocks close higher as bond yields retreat
[NEW YORK] Wall Street stocks finished higher on Thursday following a choppy session as markets weighed worries about US trade tariffs with benign inflation data and a positive Treasury bond auction. Data showed that US wholesale prices rose 0.1 per cent last month, a modest uptick that shows no major pressures so far from President Donald Trump's trade tariffs. But Trump escalated his rhetoric about tariffs, telling reporters on Wednesday night he would 'send letters out' with an ultimatum to other trading partners if they don't accept US terms. The Dow Jones Industrial Average finished up 0.2 per cent at 42,967.62. The broad-based S&P 500 gained 0.4 per cent to 6,045.26, while the tech-rich Nasdaq Composite Index advanced 0.2 per cent to 19,662.49. Investor unease about Trump's trade rhetoric is 'causing a little bit of selling,' said Jack Ablin of Cresset Capital Management. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up But Ablin said stocks were buoyed by a sharp retreat in US Treasury yields after the successful auction of 30-year US Treasury notes. Among individual companies, Boeing dropped 4.9 per cent after an Air India crash aboard a Boeing 787 Dreamliner in India claimed at least 265 lives. The calamity raised fresh questions about Boeing after a number of safety problems. GE Aerospace, which manufactures the 787 engines, dropped 2.3 per cent. Oracle surged 13.3 per cent following an upbeat earnings report. The software giant scored eight percent revenue growth in the last year but predicted the coming year would be 'even better.' AFP
Straits Times
6 hours ago
- Straits Times
US stocks close higher as bond yields retreat
Traders working on the floor of the New York Stock Exchange, in New York City. PHOTO: REUTERS NEW YORK - Wall Street stocks finished higher on June 12 following a choppy session as markets weighed worries about US trade tariffs with benign inflation data and a positive Treasury bond auction. Data showed that US wholesale prices rose 0.1 per cent in May, a modest uptick that shows no major pressures so far from President Donald Trump's trade tariffs. But Mr Trump escalated his rhetoric about tariffs, telling reporters on the night of June 11 he would 'send letters out' with an ultimatum to other trading partners if they don't accept US terms. The Dow Jones Industrial Average finished up 0.2 per cent at 42,967.62. The broad-based S&P 500 gained 0.4 per cent to 6,045.26, while the tech-rich Nasdaq Composite Index advanced 0.2 per cent to 19,662.49. Investor unease about Mr Trump's trade rhetoric is 'causing a little bit of selling,' said Mr Jack Ablin, of Cresset Capital Management. But Mr Ablin said stocks were buoyed by a sharp retreat in US Treasury yields after the successful auction of 30-year US Treasury notes. Among individual companies, Boeing dropped 4.9 per cent after an Air India crash aboard a Boeing 787 Dreamliner in India claimed at least 465 lives. The calamity raised fresh questions about Boeing after a number of safety problems. GE Aerospace, which manufactures the 787 engines, dropped 2.3 per cent. Oracle surged 13.3 per cent following an upbeat earnings report. The software giant scored eight percent revenue growth in the last year but predicted the coming year would be 'even better.' AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
