New Delhi: The Singapore stock market experienced a decline on Friday, May 5th, as bearish sentiment on Wall Street overnight and mixed trading in regional markets affected investor confidence. The benchmark Straits Times Index (STI) fell by 0.1%, or 2.55 points, to close at 3,266.63. This marked a 0.1% drop from the previous Friday’s close, resulting in a disappointing week for investors.
One of the biggest decliners on the STI was UOL, which fell by 0.8% to close at S$7.10. Local banks OCBC and UOB also experienced losses, with both falling by 0.2%. DBS shares were the worst STI performer for the week, slipping by 0.7% to close at S$31.90 and falling by 2.8% from the previous Friday’s close. On the other hand, Sembcorp Industries was the top performer for the week, experiencing a slight decline of 0.4% to S$4.58, but still up by 7% from the previous week’s close.
Gainers slightly outnumbered losers across the broader market, with 285 gainers and 265 losers after 1.3 billion securities worth S$817.3 million were traded. However, the overall sentiment was still bearish, and investors were cautious about the stability of regional banks in the wake of recent losses in major US indices.
According to IG market analyst Yeap Jun Rong, confidence in the US banking sector remained low, with the SPDR S&P Regional Banking ETF falling by 5.5% on Thursday. This has led to concerns over contagion risks and calls for action from authorities to limit further damage to investor confidence. As the weekend approached, investors were closely watching for any signs of inaction or lack of action, which could lead to a more negative risk environment at the start of next week.
Markets across the Asia-Pacific region traded mixed, with the ASX 200 in Australia rising by 0.4% and the Hang Seng Index in Hong Kong gaining by 0.5%. However, the Shanghai Composite Index fell by 0.5%, and markets in Japan and South Korea were closed for holidays on Friday.
In conclusion, the Singapore stock market experienced a decline on Friday, May 5th, with the benchmark Straits Times Index falling by 0.1% amid bearish sentiment on Wall Street overnight and mixed trading in regional markets. The local banks and UOL were among the biggest decliners, while Sembcorp Industries was the top performer for the week. The overall sentiment was cautious, with concerns over the stability of regional banks and the potential for further contagion risks. Investors were closely watching for any signs of action from authorities to address these issues and limit the negative impact on investor confidence.