Singapore shares fall as trade tariff concerns re-emerge overnight; STI down 0.7%

SINGAPORE stocks fell in tandem with other regional markets on Friday (Feb 28), as investors reassessed the potential impact of tariffs imposed by US President Donald Trump.

The Straits Times Index (STI) lost 0.7 per cent or 25.49 points to 3,895.70. Across the broader market, losers beat gainers 379 to 226, with 2.1 billion securities worth S$2.4 billion changing hands.

IG market strategist Yeap Jun Rong said: “Any implementation of tariffs may pose downside risks to global growth, potentially bringing about higher business costs, inflationary pressures on consumers, and weaker global trade activities.”

He added that Trump’s tone on tariffs overnight suggests “a tougher path to consensus” with trading partners than initially expected.

Furthermore, Yeap noted that the market’s reaction has been to de-risk as concerns over growth were reinforced by weaker US data. These included higher-than-expected jobless claims, flat core durable goods orders and disappointing pending home sales.

Similarly, Bank of Singapore currency strategist Sim Moh Siong said that he expected the greenback to strengthen on higher US yields, as markets were “shaken out of tariff complacency” overnight.

On the STI, ST Engineering was the top gainer. It rose 3 per cent or S$0.16 to S$5.41.

Meanwhile, Seatrium came in at the bottom of the table. The counter fell 3.2 per cent or S$0.07 to S$2.11.

The three local banks all closed in the red. UOB shed 0.8 per cent or S$0.31 to S$38.20, OCBC fell 0.9 per cent or S$0.16 to S$17.21, and DBS declined 1.5 per cent or S$0.71 to S$45.90.

Regional markets also ended lower on Friday. South Korea’s Kospi tumbled 3.4 per cent, Hong Kong’s Hang Seng lost 3.3 per cent, Japan’s Nikkei 225 fell 2.9 per cent, and the Bursa Malaysia KLCI retreated 0.8 per cent.