Singapore stocks traded lower on Friday morning—STI fell 0.5%

SINGAPORE: Singapore stocks traded lower on Friday (Dec 20) morning following weak performances in the United States and Europe as investors reacted to the Federal Reserve’s hawkish signals. The Straits Times Index (STI) fell 0.5%, or 18.92 points, to 3,743.96, at 9:01 am, as reported by The Business Times.

In the broader market, 73 stocks declined while 33 gained, with 30.8 million securities valued at S$49.9 million traded.

Genting Singapore led in trading volume with 3.3 million shares exchanged. Its share price fell 0.7%, or S$0.005, to S$0.745. Seatrium, another actively traded stock, remained unchanged at S$1.95.

Local banks were also down as trading began. DBS dropped 0.2%, or S$0.09, to S$43.31. OCBC declined 0.8%, or S$0.14, to S$16.54, and UOB fell 1.1%, or S$0.39, to S$36.15.

Wall Street saw little movement overnight as Treasury bond yields continued to rise after the Federal Reserve’s recent decision triggered heavy selling. Early gains in US markets faded as the 10-year Treasury yield climbed above 4.5%. On Wednesday, the Fed cut interest rates but signalled fewer rate cuts in 2025.

The Dow Jones Industrial Average inched up by less than 0.04% to 42,342.24. The S&P 500 dropped 0.1% to 5,867.08, heading for its worst week since September. The Nasdaq Composite Index also fell 0.1% to 19,372.77.

Europe equities also fell sharply, with the Stoxx 600 recording its largest single-day decline since early November as investors moved away from riskier assets following the Fed’s hawkish stance. The pan-European Stoxx 600 fell 1.5% to 506.66, a three-week low, with all major sectors also declining. /TISG

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