The Singapore Exchange (SGX) opened lower on Tuesday, tracking a mixed regional tone despite a strong overnight Wall Street rebound, as the Straits Times Index (STI) eased in early trade on profit-taking in heavyweight financial stocks.
The STI was down 19.98 points or 0.38% at 5,188.77 as at 9.02am, with market breadth slightly negative, as decliners (73) outnumbered advancers (67).
Trading activity was subdued at the open, with total volume at 65.35 million shares and value of S$119.13 million.
The weakness in the benchmark index came largely from banking counters, with DBS slipping 0.73% to 65.55, OCBC Bank down 0.48% to 24.76, and UOB easing to 39.82, collectively dragging the index lower.
Other index heavyweights were mixed, with Singtel at 4.46, SIA at 7.60, ComfortDelGro at 1.33, while AEM advanced to 10.40.
The softer start comes despite a strong lead from Wall Street, where US equities closed sharply higher overnight, led by technology shares. The Dow Jones Industrial Average rose 0.59% to a record 52,182.74, while the S&P 500 gained 1.18% and the Nasdaq Composite surged 2.07%, as investors brushed aside geopolitical tensions and rotated back into tech.
Sentiment in the US was underpinned by renewed strength in mega-cap technology and improving risk appetite ahead of the upcoming earnings season, even as markets continue to monitor US-Iran developments and key US labour data later this week.
In derivatives, SGX futures pointed to a steady but cautious regional tone, with MSCI Singapore Index Futures at 479.65 and Nikkei 225 Index Futures holding at 69,580.
Broader regional index trackers were also mixed, with Singapore-focused benchmarks such as the iEdge Singapore Next 50 Index at 1,509.42 and the iEdge S-REIT Index at 1,054.09 reflecting a subdued start for domestic risk assets.
