Singapore stocks dip at Monday’s open on fresh rate hike fears; STI down 0.2%

SINGAPORE shares opened lower on Monday (Aug 8), as red-hot US jobs data sent a chill through global markets, stoking fears that another big rate hike might be in the works.

The Straits Times Index (STI) was down 0.2 per cent, or 7.01 points, to 3,275.87 as at 9 am. But gainers still outnumbered losers 57 to 37. Some 19.3 million shares worth S$18.6 million had changed hands.

Catalist-listed Koh Brothers Eco Engineering was the second-most active stock by volume, with 2.6 million shares traded as at 9 am, sending the counter up 12.5 per cent or S$0.005 to S$0.045. This came after the company posted a 2 per cent dip in net profit to S$1.17 million for H1 2022.

Among index counters, Singtel was down 0.4 per cent, or S$0.01, to S$2.62 at the open. The stock was actively traded with 1.4 million shares changing hands.

Lenders DBS and UOB likewise started the day on a sombre note. DBS was down 0.1 per cent, or S$0.02, to S$32.82. UOB shed a steeper 2 per cent, or S$0.55, to S$27.26. OCBC was however up 0.2 per cent, or S$0.02, to S$12.26.

Last week’s strong US jobs data quashed optimism that the central bank might slow down its efforts to combat inflation. Tech majors took a hit, with Tesla falling 6.6 per cent and Meta Platforms dropped 2 per cent.

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This sent the tech-rich Nasdaq down 0.5 per cent to end Friday at 12,657.56 points. The S&P 500 declined 0.2 per cent to 4,145.19 points, while the Dow Jones Industrial Average rose 0.2 per cent to 32,803.47 points.

Anxiety from the US spilled over into Europe, where the pan-European Stoxx 600 was down 0.8 per cent on Friday. Economic data pointing to a possible recession compounded bearishness – eurozone retail sales fell in June, while the region’s business activity contracted in July for the first time since early-2021.

Tokyo stocks were similarly hit at Monday’s open. The benchmark Nikkei 225 index fell 0.3 per cent, to 28,083.33 in early trade, while the broader Topix index dropped 0.4 per cent to 1,940.23.