Singapore shares opened sharply lower, tracking overnight weakness on Wall Street as investors remained cautious over geopolitical tensions in the Middle East and the implications for inflation and global interest rates.
The benchmark Straits Times Index (STI) fell 54.40 points or 1.06% to 5,083.84 as at 9.12am, with decliners outnumbering advancers 162 to 71. Total trading volume stood at 134.91 million shares valued at S$231.68 million.
Singapore’s banking heavyweights led the decline, with DBS falling 1.15% to S$64.30, while OCBC and UOB also traded lower in early dealings. Other actively traded counters including Singtel and Yangzijiang Shipbuilding were mixed as investors adopted a risk-off stance.
The weaker opening came after Wall Street closed lower overnight, with the Dow Jones Industrial Average falling 1.21%, the S&P 500 losing 0.74% and the Nasdaq Composite declining 0.89%. Investors were unsettled by renewed tensions involving the US and Iran, which had pushed oil prices higher and reignited concerns over inflation and the possibility of higher US interest rates.
However, sentiment received some support from developments overnight after Lebanon and Israel agreed to implement a ceasefire, raising hopes of broader diplomatic progress in the Middle East. As a result, Brent crude eased 0.69% to US$97.14 per barrel while US West Texas Intermediate crude fell 0.65% to US$95.40 per barrel.
Despite the pullback, oil prices remain elevated and supply concerns persist after US crude inventories fell by 8 million barrels last week, highlighting ongoing tightness in global energy markets.
Regional markets also remained cautious, with investors closely monitoring developments surrounding US-Iran negotiations and the outlook for global interest rates. Market participants continue to assess whether easing geopolitical tensions can offset concerns over inflationary pressures and economic growth in the months ahead.
