Singapore stocks end Tuesday lower, as bearish sentiment builds across region
Regional markets also end lower; trading done under a cloud of caution amid interest-rate uncertainty
LOCAL stocks slipped on Tuesday (May 21), as the Singapore market was not spared from the mounting gloom across South-east Asian indices and market traders.
The benchmark Straits Times Index (STI) shed 0.2 per cent or 6.15 points to close at 3,307.9. Across the broader market, decliners outnumbered advancers 330 to 245, after 1.2 billion securities worth a collective S$920.8 million changed hands.
It was a sea of red across the region, as traders took to capital markets with caution against a backdrop of uncertainty about interest rates.
The Nikkei 225 lost 0.3 per cent; the Hang Seng Index tumbled 2.1 per cent, and the Bursa shed 0.3 per cent. The Kospi fell 0.7 per cent, and the ASX 200 edged down 0.2 per cent.
Seema Shah, chief global strategist at Principal Asset Management, said the Federal Reserve’s series of rate hikes has led to a “bifurcation in the economy”, where higher-income earners benefit from passive income growth, and lower-income households feel the pinch.
“Investors need to be aware of this dynamic when making investment decisions,” she said.
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Strong growth and earnings figures in the US are making it easier for investors to digest cues from the Federal Reserve, which indicate that markets “might not get the additional tailwind of rate cuts as soon as anticipated this year”, she added.
The Singapore Exchange was the top constituent gainer by dollar value on Tuesday, gaining 2.5 per cent or S$0.23 to close at S$9.45. Venture Corporation was another top gainer, rising 1.6 per cent or S$0.22 to S$14.23.
On the other end of the spectrum, incumbent constituent Jardine Matheson Holdings was the biggest index loser, shedding 1.8 per cent or US$0.70 to US$39.11.
The trio of local lenders also ended the day in the red. DBS fell 0.3 per cent or S$0.12 to S$35.68; OCBC lost 0.2 per cent or S$0.03 to S$14.38, and UOB was down 0.03 per cent or S$0.01 to S$30.23.
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