Singapore stocks fall on Tuesday, following Wall Street decline; STI down 0.5%

SINGAPORE stocks fell on Tuesday (Dec 6), following an overnight decline on Wall Street, amid concerns over the path of rate hikes in the US.

The benchmark Straits Times Index (STI) fell 0.5 per cent or 15.17 points to close at 3,252.37.

Keppel Corp led the decliners on the local index after falling 2.2 per cent to close at S$7.43. Meanwhile, DFI Retail Group was the top STI performer. The counter climbed 5 per cent to close at US$2.75

Across the broader market, losers outnumbered gainers 271 to 244 on Tuesday, after 1.4 billion securities worth S$1.2 billion changed hands.  

DBS and UOB were the two most actively traded counters by value. They were also among the STI decliners on Tuesday, shedding 1.5 per cent and 0.7 per cent respectively. OCBC shares rose 0.2 per cent to close at S$12.20.

CGS-CIMB analysts said in a report on Tuesday that they were downgrading the banking sector to “neutral” from “overweight”, as softer US inflation prints have provided a firmer argument for the US Federal Reserve to slow the pace of rate hikes. 

Elsewhere, most markets in the region ended in the red, tracking Wall Street’s decline on Monday.  

IG market analyst Yeap Jun Rong noted that interest rate expectations adjusted slightly towards the hawkish end, following an upside surprise in US services data on Monday.

“All 11 S&P 500 sectors are in the red, with a defensive lean presented in the markets,” he said, adding that the relatively quiet economic calendar for the US could keep the cautious environment in place.

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Key indices in Hong Kong, South Korea and Australia fell between 0.4 and 1.1 per cent on Tuesday. The Nikkei 225 in Japan bucked the trend, rising 0.2 per cent, while Malaysia’s KLCI and the Shanghai Composite Index ended the day flat.