Singapore’s benchmark Straits Times Index (STI) fell 1.83% over the week to 5,695.93 as surging oil prices, Middle East tensions and renewed expectations of a US rate hike weighed on sentiment.
The index declined for four straight sessions before edging up 0.11% on Friday, with the modest rebound unable to offset losses earlier in the week.
Oil prices were a major source of pressure after Brent crude moved above US$100 a barrel amid escalating Middle East tensions, raising concerns over higher costs and disruption to regional shipping.
Higher US Treasury yields also revived expectations of a Federal Reserve rate hike, weighing on rate-sensitive sectors such as banks and REITs.
DBS, OCBC and UOB, which had helped push the STI to a record high above 5,800 the previous week, became a drag on the index as yields climbed.
REITs and property counters also weakened, while transport and industrial names provided some pockets of support. SATS led gainers early in the week, while Yangzijiang Shipbuilding also outperformed on Tuesday.
The STI closed at 5,792.28 on Monday, before falling to 5,767.45 on Tuesday, 5,729.63 on Wednesday and 5,689.75 on Thursday.
Investors will now watch US inflation data and Federal Reserve guidance, alongside oil prices and developments in the Middle East, for clues on the next move for Singapore stocks.
