[SINGAPORE] Local equities finished Friday (Aug 15) lower, extending a two-day losing streak, as markets awaited peace talks between US President Donald Trump and Russian President Vladimir Putin over the Russia-Ukraine war.
The benchmark Straits Times Index (STI) fell 0.6 per cent or 25.99 points to 4,230.53. Across the broader market, decliners beat gainers 302 to 233 as 1.4 billion securities worth S$1.6 billion changed hands.
“The upcoming meeting looks more likely to sour than succeed, with oil flows potentially caught in the crossfire,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. She added that Trump had warned of “severe consequences”, including sanctions, if Ukraine peace talks stall, raising the risk of tensions with Russia.
Ozkardeskaya further noted that this week’s US consumer price index and producer price index data suggest companies have largely absorbed tariff costs so far. However, that could change if higher prices are eventually passed on to consumers.
She also said that markets now see a 93 per cent chance of a 25-basis-point cut by the US Federal Reserve in September. She expects this to be the only one this year, adding that a 50-basis-point cut is unlikely. “The White House pressure is mounting, and the September rate cut looks inevitable – come hell or high water.”
In Asia, key regional indices were mixed as Japan’s gross domestic product figures beat forecasts, while data on Chinese industrial production, investment and retail sales fell short of expectations.
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Japan’s Nikkei 225 ended 1.7 per cent higher, the Shanghai Composite rose 0.8 per cent and South Korea’s Kospi remained flat for a second consecutive day. Meanwhile, the Bursa Malaysia Kuala Lumpur Composite Index was down 0.3 per cent, and Hong Kong’s Hang Seng Index fell 1 per cent.
Back home, the STI was dragged by UOB, which fell 2.8 per cent or S$1.02 to S$35.34.
The other two local banks also ended lower; DBS shed 1.2 per cent or S$0.59 to S$49.90, and OCBC edged down 0.1 per cent or S$0.02 to S$16.90. UOB and DBS went ex-dividend on Friday.
The top performer on the index was Yangzijiang Shipbuilding, which rose 1 per cent or S$0.03 to S$2.91.
