Singapore, Sep 1: Singapore’s stock market came under pressure on Tuesday as rising crude oil prices and continued geopolitical tensions made investors more cautious.
The Straits Times Index (STI) ended the session at 5,710.37, down 44.99 points, or 0.8 per cent, from the previous close. The index moved between 5,694.39 and 5,770.33 during the day.
The decline followed a weaker trend across several Asian markets as investors assessed the possible economic impact of higher energy prices and growing uncertainty in global markets.
Rising oil prices remained a major concern. Higher energy costs can increase expenses for companies, put pressure on consumers and add to inflation, potentially influencing the outlook for interest rates.
Geopolitical tensions also kept investors on edge, encouraging a more cautious approach to riskier assets. Market participants are closely watching developments in the Middle East for signs of further disruption to global energy supplies.
Despite the overall decline, some Singapore-listed companies saw positive corporate developments. Hong Leong Asia gained nearly 2 per cent after its subsidiary renewed its application for a listing on the Main Board of the Hong Kong Stock Exchange.
Keppel DC REIT also remained in focus after agreeing to acquire an 88.62 per cent effective stake in two hyperscale data centres in Japan, strengthening its exposure to the growing digital infrastructure sector.
Vibrant Group announced the acquisition of a 60 per cent stake in Fair Breeze Trading for around SG$7.7 million.
Looking ahead, investors are expected to closely track crude oil movements, global interest rates, bond yields and geopolitical developments. With external uncertainties still high, Singapore’s stock market may remain volatile in the near term.
The market’s direction will largely depend on whether oil prices stabilise and global risk sentiment improves.