Singapore stocks retreat as US-Iran strikes unsettle markets; STI down 0.8%

[SINGAPORE] Singapore stocks finished Thursday (May 28) lower after renewed US military strikes on Iran dampened hopes for a ceasefire in the Gulf, as well as investors’ risk appetites.

The benchmark Straits Times Index (STI) lost 0.8 per cent or 39.61 points to close at 4,989.19. Across the broader market, losers outnumbered gainers 405 to 248 after two billion securities worth S$2.8 billion changed hands.

Sats led the gainers on Singapore’s blue-chip index, with a 6.7 per cent or S$0.24 climb to S$3.80.

The biggest decliner among the STI constituents was Jardine Matheson , which fell 5.6 per cent or US$3.80 to US$64.20.

The local banks all ended lower. DBS slipped 0.1 per cent or S$0.07 to S$61.93, OCBC lost 0.9 per cent or S$0.20 to end at S$23.16, and UOB was down 0.1 per cent or S$0.03 at S$37.69.

Within the iEdge Singapore Next 50 Index, Golden Agri-Resources was the top gainer. It rose 1.9 per cent or S$0.005 to S$0.27.

Meanwhile, First Resources was the biggest decliner, falling 4 per cent or S$0.11 to end the session at S$2.67.

Key regional indices ended in the red. Hong Kong’s Hang Seng Index lost 1.3 per cent, Japan’s Nikkei 225 fell 0.5 per cent, South Korea’s Kospi was down 0.5 per cent and the FTSE Bursa Malaysia KLCI declined 0.8 per cent.

Meanwhile, oil advanced, following a drop of more than 5 per cent on Wednesday.

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“The oil market remains confused about the ongoing geopolitics,” said Norbert Rucker, head of economics and next generation research at Julius Baer.

He noted that hopes for normalisation have given way to fears of escalation, as recent military attacks cast doubt on earlier reports of progress in the negotiation.

“The tug of war between escalation and normalisation keeps the oil market on its toes,” he added.

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