The Singapore stock market has experienced a downturn over the past three sessions, shedding more than 95 points or 2.5 percent. The Straits Times Index (STI) currently hovers just above the 3,790 level, with expectations of support emerging on Tuesday. The outlook for Asian markets remains uncertain, as gains from the oil sector may be counterbalanced by declines in technology shares. In contrast, European markets have faced downturns, while U.S. markets show a mixed performance, suggesting Asian markets may likely balance between these influences.
On Monday, the STI recorded a slight decline, affected by downturns in financial shares, property stocks, real estate investment trusts (REITs), and industrial sectors. The index dropped 9.86 points or 0.26 percent, concluding the session at 3,791.70, having fluctuated between 3,775.00 and 3,796.74. Key stock movements include CapitaLand Investment dipping 0.81 percent, City Developments decreasing 0.59 percent, Comfort DelGro’s fall of 0.69 percent, and DBS Group’s marginal decline of 0.14 percent. Notable declines of 2.67 percent were seen in both Genting Singapore and Keppel DC REIT, while Keppel Ltd, Mapletree Industrial Trust, Oversea-Chinese Banking Corporation, SATS, Seatrium Limited, Singapore Technologies Engineering, Wilmar International, and Yangzijiang Shipbuilding also posted losses. Conversely, SembCorp Industries rose by 0.92 percent, accompanied by a rise of 1.63 percent in SingTel. Notably, Thai Beverage plummeted by 2.73 percent, while several stocks, including Hongkong Land, Yangzijiang Financial, Mapletree Pan Asia Commercial Trust, Emperador, Mapletree Logistics Trust, and CapitaLand Integrated Commercial Trust, saw no change.
Wall Street exhibited mixed trends, with major indices opening and closing on both sides of the unchanged line. The Dow Jones Industrial Average surged by 359.95 points or 0.86 percent to settle at 42,298.40. Meanwhile, the NASDAQ declined by 74.01 points or 0.39 percent, closing at 19,087.62, and the S&P 500 increased slightly by 8.27 points or 0.14 percent, ending at 5,835.31.
The technology sector exerted early pressure on Wall Street, influenced by a significant decline of 4.7 percent in Nvidia (NVDA), a prominent player in AI and market leadership. Concerns over interest rate trends also contributed to negative market sentiment, following an unexpectedly strong monthly jobs report. Nevertheless, selling pressure eased during the session, prompting some traders to capitalize on lower stock prices, helping the S&P 500 to recover from its lowest intraday level in over two months.
In the energy markets, oil prices experienced a significant increase, reaching a five-month peak on Monday, driven by potential supply risks following extensive U.S. sanctions on Russian oil exports. Additionally, the strength of the U.S. dollar added to these dynamics. West Texas Intermediate crude oil futures for February delivery closed $2.25 higher, or nearly 3 percent, climbing to $78.82 per barrel.
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