Singapore shares opened marginally lower on Wednesday, tracking overnight weakness on Wall Street as investors remained cautious over the sustainability of the artificial intelligence-driven rally and awaited fresh signals from the US Federal Reserve.
The benchmark Straits Times Index (STI) slipped 7.11 points, or 0.13%, to 5,335.13 as at 9.08am.
Market breadth was narrowly positive, with 84 advancers edging out 82 decliners after 57.40 million shares worth S$178.50 million changed hands.
Investor sentiment remained subdued after the Nasdaq Composite led losses among the major US indices overnight, falling 1.16% as semiconductor stocks came under renewed pressure despite stronger-than-expected earnings from Samsung Electronics. The S&P 500 eased 0.45%, while the Dow Jones Industrial Average slipped 0.25%.
The selloff was driven by heavy declines in chipmakers including Micron Technology and Sandisk, amid growing concerns that AI-related stocks may have become overvalued following months of strong gains. Sentiment was also weighed by reports that Chinese startup DeepSeek is developing its own AI chip, potentially reducing reliance on established players such as Nvidia and Huawei.
Among actively watched Singapore blue chips, DBS dipped 0.03% to S$68.61 as at 9.09am, while OCBC Bank traded at S$26.43, UOB at S$41.71, Singtel at S$4.38 and Singapore Exchange at S$23.91.
In the derivatives market, SGX recorded trading volume of 19,870 contracts by 8.53am. The SGX FTSE China A50 Index Futures for July stood at 14,889.00, while Nikkei 225 Index Futures for September traded at 68,345.00.
Investors are also keeping a close watch on the release of minutes from the US Federal Reserve’s latest policy meeting, the first chaired by Kevin Warsh, for further clues on the outlook for interest rates. Rising oil prices following renewed tensions around the Strait of Hormuz are also expected to remain on investors’ radar throughout the trading session.
