Singapore bourse spared in regional rout sparked by US tariffs; STI down just 0.3%

[SINGAPORE] Compared to their regional peers, Singapore shares ended Thursday (Apr 3) almost unscathed by the tsunami of tariffs the United States unleased on its trading partners, as the city-state is among the countries facing the lowest duty rate of 10 per cent.

The blue-chip gauge, the Straits Times Index (STI), closed lower by only 0.3 per cent or 11.98 points at 3,942.23.

Other key markets in the region were hit harder by the duties, with their indices dropping by 0.3 to 2.8 per cent. But the Shanghai Composite Index was surprisingly resilient: It slipped just 0.2 per cent, despite China being slapped with a 34 per cent reciprocal tariff on top of earlier levies.

OCBC Global Markets Research said Singapore’s 10 per cent tariff is a “silver lining”, since it is “relatively mild” compared to the duties imposed on China, Vietnam and many other Asean countries.

“Singapore’s resilience will depend on how well it adapts to shifting trade flows, potentially benefiting from companies diversifying away from the more heavily tariffed countries, while managing broader economic uncertainties and financial market volatility,” it added.

However, the Republic will still feel an indirect impact through knock-on effects on its role as a trading, logistics and financial hub, the report said. Singapore’s top three non-oil domestic export markets in 2024 were China (17 per cent), the United States (15.8 per cent), and Malaysia (8.7 per cent). 

Across the broader market in Singapore, decliners trumped gainers 329 to 216, with 1.3 billion securities valued at S$1.9 billion transacted.

Shares of OCBC closed down 0.8 per cent or S$0.13 at S$17.09, a day after the bank announced its plans to deploy £10 billion (S$17.4 billion) in financing over the next six years to support foreign direct investment into the United Kingdom.

The funds will be channelled into sectors that include energy, transportation, infrastructure, data centres and real estate. Separately, the lender has also priced 500 million euros (S$737 million) in fixed-rate covered bonds due 2028.

SEE ALSO

Where Trump’s tariffs landed and how Singapore has been hit

Stocks to watch: OCBC, Stoneweg E-Reit

Singapore’s STI holds steady amid deeper Asia losses on Trump tariffs

The other banking counters slid as well. UOB declined 1.8 per cent or S$0.69 to S$36.88, and DBS was down 1.1 per cent or S$0.52 at S$45.52.

China-based Yangzijiang Shipbuilding was the worst performer on the STI, finishing 3.8 per cent or S$0.09 lower at S$2.26.