Singapore stocks fall amid weaker regional sentiment; STI down 0.1%

THE Straits Times Index (STI) fell 0.1 per cent or 3.33 points to 3,203.77 on Tuesday (Jul 4), amid softer regional market sentiment due to worries over the strength of the Chinese economy and geopolitical concerns.

Across the broader market, gainers beat losers 276 to 213 after 1.2 billion shares worth S$607.2 million changed hands.

Olivier d’Assier, Qontigo Asia-Pacific head of applied research, said: “Investors’ concerns centre on the strength of China’s economy, worsening US-China relations, and rising US interest rates.”

He added that average trading volumes are currently lower than a year ago, with all sectors except industrials and utilities experiencing lower turnover.

Furthermore, while market risk has declined since last November, d’Assier said that any rise in volatility could be a precursor for market correction if sentiment weakens further.

“With the Q2 earnings season to start only two weeks from now, company-specific news and forward guidance from CEOs will again dictate the direction of sentiment for the summer,” he added.

Regional markets were mixed on Tuesday. Japan’s Nikkei 225 shed 1 per cent and South Korea’s Kospi declined 0.4 per cent, while Hong Kong’s Hang Seng Index rose 0.6 per cent. Both the Kuala Lumpur Composite Index and the Jakarta Composite Index fell 0.2 per cent.

On the STI, Thai Beverage was the biggest gainer, gaining 1.8 per cent or S$0.01 to S$0.58.

Meanwhile, Wilmar International was at the bottom of the table, falling 2.6 per cent or S$0.10 to S$3.68.

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The trio of banks ended the day mixed. OCBC gained 0.3 per cent or S$0.04 to S$12.35, while DBS shed 0.3 per cent or S$0.09 to S$31.42 and UOB fell 0.3 per cent or S$0.07 to S$27.92.