Singapore shares fall on Friday amid Middle East tensions; STI down 0.3%
SINGAPORE – Local shares dipped on June 13 after escalating conflict in the Middle East prompted investors to sell up and reduce their risk exposure ahead of the weekend.
There was hardly a rush to the exits, but the sell-off did leave the Straits Times Index (STI) down 0.3 per cent or 10.78 points at 3,911.42 with losers easily outstripping gainers 359 to 160 on trade of one billion securities worth $1.3 billion.
Jardine Matheson was the top blue-chip gainer, rising 1.8 per cent to US$45.44, while Seatrium was the biggest decliner, down 2.8 per cent to $2.06.
The local banks fell. DBS dropped 0.5 per cent to $44.45, OCBC closed 0.5 per cent down at $16.06 and UOB shed 0.4 per cent to $34.95.
The Israeli strikes on Iran also sent Asian and European stocks tumbling while US index futures slipped in pre-market trade. Investors also rushed to safer assets and helped send gold and the greenback higher.
'Oil and defence stocks will likely benefit from rising tensions, but the rest of the market should remain under pressure,' said Swissquote Bank analyst Ipek Ozkardeskaya.
Most regional markets declined and many took a bigger hit than the STI. China's Shenzhen Component led the losers, shedding 1.1 per cent, while South Korea's Kospi and the Nikkei 225 in Japan each shed 0.9 per cent.
Australian shares got off relatively lightly, with the ASX 200 index closing down 0.2 per cent
Wall Street traders, who were mostly off duty when the air strikes occurred, were focused on the bond market in a positive trading session overnight, with investors growing more confident that another cut in interest rates is imminent.
Stocks, meanwhile, dipped in early trading before reversing course in the afternoon, with investors giving little heed to new threats of tariffs from President Trump.
The S&P 500 led gains, rising 0.4 per cent, while the Dow Jones Industrial Average and Nasdaq each climbed 0.24 per cent. THE BUSINESS TIMES
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