Market faces global headwinds, with major indices in decline
The Straits Times Index (STI) closed down by 1.4% or 45.13 points, settling at 3,181.97 on Monday (Sep 26). This decline mirrored regional downturns as global markets grapple with mounting economic concerns.
In the broader market, losers outnumbered gainers, with 413 stocks falling compared to 194 rising. A total of 1.56 billion securities, valued at S$1.70 billion, were traded. IG market strategist Yeap Jun Rong highlighted that, in addition to the declines in US indices, short-term US rates also ticked higher. The inversion of the yield curve to its lowest point since 1981 signals rising recession risks, raising concerns about whether economically sensitive sectors may face further pressure if economic conditions continue to deteriorate.
Across Asia, major markets posted losses. South Korea’s Kospi composite index dropped 3%, Japan’s Nikkei 225 fell by 2.7%, the Jakarta composite and Kuala Lumpur composite indices both lost 0.7%, and Hong Kong’s Hang Seng index edged down by 0.4%.
Among the few gainers on the STI, inflight caterer and ground handler Sats (+1%, S$3.90) and liquor company Emperador (+1%, S$0.50) were notable exceptions.
Meanwhile, Yangzijiang Shipbuilding faced a significant setback, falling by 10.5% or S$0.13 to S$1.11. This drop followed heavy trading and a query from the Singapore Exchange Regulation after its recent announcement regarding a new licence to construct large liquefied natural gas (LNG) vessels. The rise in share prices earlier in September may have been influenced by media reports related to this deal.
