Singapore’s blue-chip index down 0.7% on Wednesday as oil hits US$100 a barrel
Across the broader market, losers beat gainers 297 to 235, as 1.1b securities worth S$1.9b change hands
[SINGAPORE] Singapore stocks ended lower on Wednesday (Sep 9), as mounting tensions in the US-Iran conflict sent the Brent crude oil price over US$100 a barrel.
The benchmark Straits Times Index (STI) lost 0.7 per cent or 37.82 points to finish at 5,729.63.
The worst blue-chip performer was Jardine Matheson , which fell 1.8 per cent or US$1.08 to US$57.63.
The local banks all likewise ended lower. DBS declined 0.8 per cent or S$0.60 to S$77.50, OCBC was down 1.1 per cent or S$0.35 at S$31.35, and UOB lost 1 per cent or S$0.42 to close at S$41.18.
DFI Retail Group , however, emerged as the STI’s top gainer with a rise of 1.7 per cent or US$0.06 to US$3.68.
Within the iEdge Singapore Next 50 Index, semiconductor player AEM advanced by the most, rising 4.5 per cent or S$0.40 to S$9.32. Glovemaker Top Glove was the biggest decliner, shedding 3.4 per cent or S$0.007 to end at S$0.198.
Across the broader market, losers beat gainers 297 to 235, after 1.1 billion securities worth S$1.9 billion changed hands.
Regional markets were mixed. Both Hong Kong’s Hang Seng Index and Japan’s Nikkei 225 Index fell by 0.2 per cent, while the FTSE Bursa Malaysia KLCI ended the day flat. South Korea’s Kospi gained 1.4 per cent.
The varied performance came as Brent crude oil futures exceeded US$100 per barrel for the first time since July.
The Middle East conflict has flared up again, with Iran threatening the US with “economic warfare” and Houthi rebels attacking Saudi Arabia.
Amid geopolitical and macroeconomic risks, “investors don’t seem keen to chase equity markets higher”, said Saxo’s UK investor strategist Neil Wilson in a note on Wednesday.
With the new high in oil, “the spectre of an even more prolonged disruption looms over markets (and) intensification of attacks on tanker shipping could push front-month contracts a lot higher from here”, he added.
Bonds are also under pressure, with Wilson noting that the 10-year US Treasury yield stood at 4.8 per cent, while the 10-year UK gilt yield is “nudging” 5.2 per cent.
“While inflation and fiscal risks seem very well-discounted at these levels, the risks to yields are probably still skewed to the upside,” he said.
