Singapore Market falls on renewed Middle East tensions

The Singapore Kong share market finished session lower on Friday, 19 April 2024, as risk aversion selloff triggered on concerns over worsening geopolitical conditions in the Middle East after reports of Israel striking Iran with missiles.

Risk appetite soured on Middle East tensions. The latest developments prompted concerns over a widening of the Israel-Hamas war in Gaza to include other countries in the Middle East. Irans state media said the country had activated its air defence system after reports of explosions near the Iranian city of Isfahan.

Also, selloff in the market fueled by US labour reports released overnight reaffirming bets interest rates would remain higher for longer. US Federal Reserve chairman Jerome Powell backed away from providing guidance on when rates may be cut, saying instead that monetary policy needs to be restrictive for longer.

At closing bell, the Straits Times Index (STI) index was down 11.15 points, or 0.35% to 3,176.51 after trading between 3,152.72 and 3,195.77. Volume of 1.81 billion shares worth S$1.41 billion changed hands. Across the broader market, decliners outpaced advancers with 372 to 244.

Seatrium was the top constituent gainer for the day, rising 1.32% to S$0.077. DFI Retail Group was the top decliner on the STI for the day, down 3.8% to S$1.77.

Banking stocks ended the day lower, with shares of DBS Group Holdings falling 0.11% to S$36.41, Oversea-Chinese Banking Corp erasing 0.15% at S$13.69, and United Overseas Bank declining 0.73% at S$29.93.

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