Singapore stocks extend losing streak; STI tumbles 1.3% on Tuesday

THE Straits Times Index (STI) fell 1.3 per cent or 40.88 points to close at 3,234.19 on Tuesday (May 10), tracking a rout in the US equity market and tumbling oil prices.

In the wider Singapore market, losers outnumbered gainers 400 to 145, with 1.66 billion securities worth S$1.66 billion changing hands.

“The markets continue to price in the impending deterioration of economic conditions, brought about by the Fed’s tightening of liquidity, lingering geopolitical tensions and China’s virus risks,” said IG market strategist Yeap Jun Rong.

“Oil prices also took a hit as the EU softened some of its proposed sanctions on Russian crude in order to address some pushback from its members, which dragged the energy sector lower by more than 8 per cent,” he added.

According to Yeap, markets may continue to price in the worst amid the uncertainty “until there is greater clarity that economic conditions will be able to hold up ahead”.

Dairy Farm International (DFI) saw the largest decline among blue-chip counters, sliding 4.4 per cent or US$0.12 to close at US$2.62.

Singtel was the most actively traded counter on the STI for the second straight day this week. It was also the top gainer among the constituent stocks. The counter rose 1.8 per cent or S$0.05 to end at S$2.80, after 63.1 million shares changed hands.

Yangzijiang Shipbuilding was the only other gainer among the blue-chip stocks on Tuesday. The counter edged up 0.6 per cent or S$0.005 to S$0.895.

The trio of local lenders all suffered losses. DBS dropped 1.4 per cent or S$0.45 to close at S$32.45, UOB fell 1.6 per cent or S$0.48 to S$28.77, while OCBC ended 1.2 per cent or S$0.14 lower at S$11.74.

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Singapore shares fall at Tuesday’s open; STI down 0.9%

Most key Asian markets also closed lower. Japan’s Nikkei 225 and South Korea’s Kospi each closed 0.6 per cent lower, while Hong Kong’s Hang Seng fell 1.8 per cent. The FTSE Bursa Malaysia KLCI staged a late rally following the midday break to end 0.4 per cent higher.