Singapore stocks ended lower for a second straight week, with the Straits Times Index (STI) falling 39.82 points or 0.70% to 5,652.11 for the week ended Sept 18 as concerns over the pace of artificial intelligence development triggered a sharp midweek sell-off.
The STI started the week on a stronger footing, rising 0.40% on Monday to 5,718.02, with Yangzijiang Shipbuilding among the notable gainers.
Sentiment turned sharply on Tuesday, however, as the index plunged 1.40% to 5,638.64 after executives from major US technology companies raised concerns over the pace of AI development. Local banks were also hit, with OCBC falling 2.7%, UOB dropping 2.4% and DBS declining 1.2%.
The market stabilised on Wednesday, with the STI easing just 0.06% to 5,635.41, before recovering 0.45% on Thursday to 5,660.52 following the US Federal Reserve’s 25-basis-point rate hike.
Yangzijiang Shipbuilding and UOB led Thursday’s rebound, rising 1.78% and 1.63% respectively.
The index slipped another 0.08% on Friday to 5,656.11, with Hongkong Land gaining 2.6% to provide some support while DFI Retail Group and SGX were among the weaker counters.
The weekly decline leaves the STI in a second consecutive week of consolidation, although the index remained up 21.74% year-to-date on a total-return basis.
The market will continue to watch global interest rates, oil prices and technology-sector sentiment for direction, following the Fed’s latest rate hike and continued uncertainty over AI investment.
