Singapore stocks extend losses as geopolitics, growth worries weigh; STI down 1.1%
Yong Jun Yuan
THE Straits Times Index (STI) fell 1.1 per cent or 34.95 points to 3,150.43 on Thursday (Jul 6) as investor sentiment weakened amid geopolitical concerns and interest rate expectations.
Across the broader market, losers beat gainers 338 to 196, after 1.2 billion securities worth S$1.1 billion were traded.
Major Asian bourses were also in the red. Japan’s Nikkei 225 fell 1.7 per cent, Hong Kong’s Hang Seng Index tumbled 3 per cent, while South Korea’s Kospi lost 0.9 per cent.
Singapore Exchange market strategist Geoff Howie cited news reports of both the US’ and China’s low expectations over US Treasury Secretary Janet Yellen’s visit to China for the weak investor sentiment.
He added that this could have coincided with a “broad risk-off tone”, particularly in stocks that are sensitive to US-China geopolitical risk, or stocks that significantly outpaced in the first half of the year, such as Sembcorp Industries and Keppel Corp .
Investors may also be pricing in expectations of higher interest rates.
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Notably, the cut-off yield of Singapore’s six-month Singapore Treasury bill rose to 3.99 per cent at the close of the auction on Thursday, from 3.89 per cent at the previous auction on Jun 22.
On the STI, Sembcorp led the index’s losses, falling 5 per cent or S$0.28 to S$5.38.
Meanwhile, UOL was at the top of the table, gaining 2 per cent or S$0.13 to S$6.60.
The trio of local banks all ended in the red. DBS fell 1.6 per cent or S$0.50 to S$30.71, UOB was down 1.2 per cent or S$0.32 to S$27.51, while OCBC shed 1.1 per cent or S$0.13 to S$12.10.
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