Singapore stocks track Wall Street lower; STI down 0.5%

SINGAPORE shares fell for the third session in a row on Tuesday (Sep 27), as the market tracked overnight Wall Street losses.

The Straits Times Index shed 0.5 per cent or 16.47 points to 3,165.50. Losers beat gainers 280 to 217, with some 1.32 billion securities worth S$1.45 billion changing hands.

Saxo market strategist Charu Chanana noted that the sell-off in US equities will likely continue, as bond yields continue to rise and the US dollar picks up strength. Overnight, the broad-based S&P 500 and the Nasdaq composite index fell 1 per cent and 0.6 per cent, respectively.

“Although we could see quant traders likely to swoop and trigger a rally, we emphasise that headwinds still remain in place,” she said.

“As bond yields and the US dollar are still charging, financial conditions and valuation remain pressured by the Fed’s pledge to tighten liquidity, and we are still likely to see more earnings downgrades,” Chanana said, adding that any potential rally would likely be “very short-lived”.

Across the region, markets put up a mixed performance. Hong Kong’s Hang Seng Index edged up 0.03 per cent, South Korea’s Kospi composite index climbed 0.1 per cent, while Japan’s Nikkei 225 gained 0.5 per cent. On the other hand, the Kuala Lumpur Composite Index and the Jakarta Composite Index shed 0.2 per cent.

SEE ALSO

Fed won’t let up until investors get a lot more nervous

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

The top gainer on the STI was Genting Singapore , which gained 1.3 per cent or S$0.01, to close at S$0.79.

At the bottom of the table was Keppel DC Reit , which fell 2.8 per cent or S$0.05 to close at S$1.74.

The 3 major banks were in the red on Tuesday. UOB declined 1 per cent or S$0.26 to close at S$26.57; OCBC fell 0.6 per cent or S$0.07 to close at S$11.87, and DBS shed 0.5 per cent or S$0.17 to close at S$33.02.