Singapore stocks extend declines amid geopolitical uncertainty; STI down 0.4%
On a positive note, the iEdge Singapore Next 50 Index gains 0.3% or 4.96 points to 1,484.99
[SINGAPORE] Singapore stocks extended declines on Wednesday (Jan 21) amid a mixed regional performance, as global markets were rocked by continued geopolitical tensions over Greenland as well as weakness in Japanese government bonds.
The benchmark Straits Times Index (STI) lost 0.4 per cent or 18.12 points to finish at 4,809.88.
On a positive note, the iEdge Singapore Next 50 Index gained 0.3 per cent or 4.96 points to 1,484.99.
Across the broader market, gainers edged out losers 290 to 270, after 1.4 billion securities worth S$1.6 billion changed hands.
Key regional indices were mixed. Hong Kong’s Hang Seng Index gained 0.4 per cent, South Korea’s Kospi was up 0.5 per cent and the FTSE Bursa Malaysia KLCI rose 0.4 per cent, but Japan’s Nikkei 225 index lost 0.4 per cent.
Global markets are being rattled by an “exotic blend” of rising geopolitical tensions between the US and Europe – over Donald Trump’s willingness to buy Greenland – and a major sell-off in Japanese government bonds, said Ipek Ozkardeskaya, senior analyst at Swissquote.
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“The Greenland chaos will remain the main course of the week and will be served again today, as Donald Trump prepares to rock the boat in Davos,” she said.
Ozkardeskaya said the rally in gold to US$4,888 per ounce is a good indicator of how uncertain and tense markets have become.
“The only certainty is uncertainty,” she added.
On the STI, Thai Beverage led the gainers, rising 1.1 per cent or S$0.005 to end at S$0.47.
The worst performer among STI constituents was Hongkong Land, falling 3.1 per cent or US$0.26 to close at US$8.15.
The three local banks ended mixed on Wednesday. OCBC rose 0.4 per cent or S$0.09 to S$20.44 and UOB was up 0.1 per cent or S$0.03 at S$36.77, but DBS finished 0.2 per cent or S$0.11 lower at S$58.02.
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