Singapore stocks retreat following AI headwind fears; STI closes lower

[SINGAPORE] Singapore stocks ended lower on Monday (Jun 8) amid fears of Big Tech and the release of US labour data, which also led to a significant pullback in global markets earlier.

The Straits Times Index (STI) lost 1.7 per cent or 86.29 points to finish at 4,963.67.

It ended in a sea of red with only two counters, CapitaLand Integrated Commercial Trust and Mapletree Logistics Trust closing unchanged at S$2.27 and S$1.18, respectively.

The worst performer on the blue-chip index was Sats , which fell 3.3 per cent or S$0.13 to close at S$3.86.

The local banks all ended lower. DBS lost 1.6 per cent or S$1.02 to S$62.76, OCBC fell 2.3 per cent or S$0.54 to S$23.40, and UOB was down 2 per cent or S$0.76 at S$37.79.

Within the iEdge Singapore Next 50 Index, Lendlease Global Commercial Reit was the top gainer, rising 1.8 per cent or S$0.01 to finish at S$0.56, while Yangzijiang Financial was the biggest loser, falling 4.2 per cent or S$0.01 to end the session at S$0.23.

Across the broader market, losers beat gainers 489 to 149, after 1.5 billion securities worth S$2.2 billion changed hands.

Key regional indices were all negative. Hong Kong’s Hang Seng Index lost 1.2 per cent, Japan’s Nikkei 225 index fell 3.9 per cent, South Korea’s Kospi was down 8.3 per cent and the FTSE Bursa Malaysia KLCI declined 0.8 per cent.

“Markets are adopting a more cautious tone, but this is not a full-blown panic,” said Charu Chanana, chief investment strategist at Saxo on Monday.

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She added that what investors are seeing is a “recalibration”, as they digest several pressures simultaneously after a strong run.

This included crowded positioning in the AI trade, an increasingly top-heavy market, questions around how the next phase of AI investment will be financed following recent developments and a repricing of US Federal Reserve expectations after firmer US data.

This article has been written with the assistance of AI and reviewed by a reporter