Singapore stocks pull back on Tuesday; STI down 0.2%

SINGAPORE shares closed lower on Tuesday (May 31), as traders took in macroeconomic news including Shanghai easing more restrictions and the European Union’s announcement of a ban on most Russian oil imports. 

The STI slipped 0.2 per cent or 6.43 points to end at 3,232.49.  Across the broader market, advancers outpaced decliners 272 to 212, after 2.2 billion securities worth S$3.4 billion changed hands. 

Markets across the region generally ended the trading day on a more upbeat note. Hong Kong’s Hang Seng Index added 1.4 per cent, the Shanghai Composite Index rose 1.2 per cent, Malaysia’s KLCI jumped 1.8 per cent, while South Korea’s Kospi advanced 0.6 per cent. Japan’s Nikkei 225, however, fell 0.3 per cent. 

Olivier d’Assier, head of applied research for Asia-Pacific at Qontigo, cautioned that macroeconomic uncertainty in markets will remain high for the foreseeable future. One factor to watch is the war in Ukraine, he said. 

“The war in Ukraine must end for sentiment to have a chance at a full recovery and become bullish again. Only then will the pendulum decidedly swing in favour of risk-tolerant assets and support a rotation out of risk-averse ones, and lead to a sustainable market recovery. 

“Pending this event, investors will continue to favour investment strategies that prevent a lot of money from becoming a little,” he said. 

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Malaysia: Shares close higher on Tuesday

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On the local bourse, Jardine Cycle and Carriage was the top gainer for the day, adding 1.6 per cent or S$0.45 to finish at S$29.30. Haw Par Corporation was another top advancer, rising 3.8 per cent or S$0.43 to S$11.72. 

The trio of local lenders booked a mixed performance on Tuesday, with 2 of the 3 among the top gainers. UOB added 0.6 per cent or S$0.17 to S$29.51, while OCBC rose 0.9 per cent or S$0.11 to S$11.83. DBS , however, fell 0.7 per cent or S$0.23 to S$30.94. 

Jardine Matheson Holdings was the biggest decliner for the day, shedding 1.6 per cent or US$0.96 to US$58.04. Coming in second on the losers table was Singapore Exchange , which fell 3.2 per cent or S$0.31 to S$9.53.