SINGAPORE - The Straits Times Index (STI) ended April 15 at 3,183.61, down 33.3 points or 1 per cent, in line with many other regional markets.
Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index both fell 0.7 per cent, and the FTSE Bursa Malaysia KLCI was down 0.6 per cent. The Indonesian and Thai markets were closed for Eid al-Fitr and Songkran, respectively.
China bucked the trend, however, with the Shanghai Stock Exchange Composite ending up 1.3 per cent.
Some of the weakness may be attributed to a stronger-than-expected inflation report coming out of the United States last week, which dashed market expectations of a June cut to the US federal funds rate.
A fall in interest rates would have lifted stock markets, as some investors would shift out of low-risk fixed income assets and into equities instead.
Market watchers also noted that Iran’s weekend attack on Israel has raised the likelihood of all-out war in the Middle East.
“Risk-off is back with the escalating conflict in the Middle East and higher-than-expected inflation in the US,” said Phillip Securities Research’s head of research Paul Chew in a note to clients.
Among STI constituents, the day’s most heavily traded stock was offshore and energy solutions provider Seatrium. It fell 3.7 per cent, making it the STI’s third-worst performer – just behind real estate investment trust Mapletree Pan Asia Commercial Trust (down 4.6 per cent) and grocery store operator DFI Retail Group Holdings (down 4.5 per cent).
Among small caps, LifeBrandz was the most heavily traded with its shares doubling to $0.002. The company requested a trading halt after the market closed, with an announcement to come. THE BUSINESS TIMES
