STI falls 0.7% as oil crosses US$100 mark again on US-Iran turmoil
Key Asian markets are also down, with the exception of Japan
On September 10, Singapore's blue-chip stocks experienced a decline amid investor caution over potential conflict in the Strait of Hormuz and a second consecutive day of oil prices surging above $100 per barrel. The Straits Times Index (STI) fell by 0.7 percent, or 39.88 points, to reach 5,689.75. Keppel, an asset manager, led the decliners with a 2.8 percent drop, while DBS and UOB, two of Singapore’s top three lenders, also saw declines by 0.9 percent and 0.5 percent, respectively.
OCBC, however, managed a slight rise of 0.1 percent. Jardine Matheson emerged as the top gainers with an 0.8 percent increase, while Top Glove and Sasseur Reit were the main decliners, with gains and losses of 18.7 percent and 5.9 percent, respectively. Across the broader market, there were 359 decliners against 201 advancers, following a turnover of 1.2 billion securities worth S$1.8 billion.
Decliners outnumbered advancers in other regional markets, including the FTSE Bursa Malaysia KLCI, the Hong Kong Hang Seng Index, and South Korea's Kospi. Investor caution was heightened after Brent crude prices crossed the $100 mark for the second consecutive day, coinciding with Iran's claim of attacking multiple vessels attempting to pass through the Strait of Hormuz.
The last time oil prices breached the $100 threshold was in July. Tensions combined with a global bond rout have made investors wary, according to RHB’s group chief economist, Barnabas Gan. Traders are reportedly adopting a defensive strategy, increasing fixed income exposure while reducing risky equities. However, Gan believes Malaysia, a major oil exporter, could serve as a sturdy shield against the ongoing volatility due to its premium-priced crude oil grades.
The country's light sweet crude, which is low in sulfur content and yields high-quality fuels, maintains a price premium over dated Brent crude. Malaysia primarily exports these premium grades, while importing the cheaper medium and heavy sour crude from the Middle East for domestic refining.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
