SINGAPORE shares closed slightly lower on Thursday (Nov 21) as regional indices ended in the red, with the imminent threat of US trade tariffs under Donald Trump’s presidency elevating uncertainty in Asian markets.
The Straits Times Index (STI) slipped 0.1 per cent or 4.42 points to 3,739.22. Across the broader market, losers beat gainers 284 to 233, after 1.3 billion securities worth S$1.2 billion changed hands.
Regional stock indices were in the red on Thursday. South Korea’s Kospi shed 0.1 per cent, Japan’s Nikkei 225 fell 0.9 per cent, and Hong Kong’s Hang Seng Index lost 0.5 per cent. The Bursa Malaysia Kuala Lumpur Composite Index and Indonesia’s IDX Composite both ended 0.6 per cent lower.
Asian markets could see a lift in sentiment on the margin with any acceleration in the US economy and market outlooks, noted Raj Singh, portfolio manager at Principal Asset Management.
“However, (the) looming threat from tariffs will keep uncertainty elevated in Asian markets, and sequencing of US policies on deregulations, tariffs and immigration will be important for Asia,” he said.
He added that long-term structural stories such as India may be able to weather the uncertainty better due to domestic activity, while potentially benefiting from the lower oil prices and increased capital expenditure by US companies.
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He also foresees Asia financials possibly benefiting from higher interest rates, as policymakers in the region may need to keep rates higher on a stronger US dollar to support their currencies.
On the STI, Singapore Exchange was the top gainer. It rose 3 per cent or S$0.37 to S$12.53.
Telco giant Singtel came in at the bottom of the table, shedding 2.2 per cent or S$0.07 to close at S$3.06.
The trio of local banks ended the day mixed. DBS rose 0.8 per cent or S$0.35 to S$42.56, while UOB was down 0.2 per cent or S$0.08 at S$36.15, and OCBC fell 0.3 per cent or S$0.05 to S$16.43.
