Singapore shares opened lower on Thursday as investors digested a sharp overnight decline on Wall Street amid renewed concerns over inflation, interest rates and escalating geopolitical tensions in the Middle East.
The benchmark Straits Times Index (STI) fell 24.66 points, or 0.5%, to 4,934.19 as at 9.04am, with decliners significantly outnumbering gainers at 148 to 55. Trading volume stood at 202.78 million shares valued at S$178.33 million.
Market sentiment remained cautious after US stocks suffered broad-based losses overnight. The Dow Jones Industrial Average tumbled 1.87%, while the S&P 500 and Nasdaq Composite dropped 1.62% and 1.98% respectively, weighed down by a sell-off in technology and semiconductor counters.
The weakness was driven by concerns over elevated valuations in artificial intelligence-linked stocks, alongside renewed uncertainty after US President Donald Trump warned of possible further military action against Iran if a peace agreement is not reached.
Investors were also assessing stronger inflationary pressures in the United States after consumer prices rose 4.2% in May, reinforcing expectations that the Federal Reserve could keep interest rates higher for longer.
Among STI constituents, DBS Group Holdings slipped 0.31% to S$61.64, while OCBC Bank traded at S$23.21. Telecommunications giant Singtel changed hands at S$4.21.
Elsewhere, Yangzijiang Shipbuilding traded at S$3.36, AEM Holdings stood at S$8.89, ComfortDelGro was at S$1.29 and Singapore Exchange Ltd traded at S$21.81.
In the derivatives market, SGX’s FTSE China A50 Index Futures for June stood at 15,220 points, while MSCI Singapore Index Futures for June traded at 448.90.
Investors are expected to remain cautious throughout the session as they monitor developments surrounding the US-Iran conflict and await further signals on the Federal Reserve’s interest rate trajectory following the latest inflation data.
