[SINGAPORE] The Straits Times Index (STI) closed down on Wednesday (Apr 9), mirroring most regional indices.
The STI fell 2.2 per cent or 75.78 points to 3,393.69.
The trio of local banks continued their decline on Wednesday, with DBS down 2.2 per cent or S$0.84 at S$37.16. OCBC declined 2.6 per cent or S$0.39 to S$14.42 and UOB closed 3.5 per cent or S$1.14 lower at S$30.99.
The biggest gainer was Singtel, which rose 1.2 per cent or S$0.04 to S$3.40.
The biggest loser was Mapletree Logistics Trust, which fell 8.7 per cent or S$0.10 to close at S$1.05.
Across the broader market, decliners outnumbered advancers 414 to 203 after two billion shares worth S$2.9 billion changed hands.
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Most major indices across the region ended lower, with the Kospi down 1.7 per cent, the Nikkei 225 falling 3.9 per cent and the KLCI shedding 3 per cent. However, Hong Kong’s Hang Seng Index inched up 0.7 per cent.
The STI’s concentration on banking stocks is serving as headwinds, said Yeap Jun Rong, market strategist at IG. The banking sector made up over 50 per cent of the index’s weight in recent times, making the STI sensitive to shifts in Fed policy, with investors pricing in four 25-basis-point rate cuts in 2025.
“Any deterioration in growth conditions ahead could also create a more challenging environment for the banks – in terms of weaker loan demand, tighter net interest margins, higher credit risks and softer wealth management activities,” said Yeap.
Singapore equities might see a near-term bounce on any positive news. However, the plunge of the STI to a new low since September 2024 could threaten a shift in market structure and result in a new low, said Yeap.
