Singapore’s shares fell 160 points, or 2.9%, to 5,448 around midday on Thursday, extending the previous session’s losses and hitting their lowest level since July 9. The market tracked an overnight decline on Wall Street, as higher US Treasury yields weighed on risk appetite. Rising oil prices further dampened sentiment by stoking concerns about inflation and the outlook for interest rates.
The latest FOMC minutes also added pressure, after the Federal Reserve signaled it could raise rates again this year. Domestically, Singapore’s annual inflation rate rose to 2.3% in August, its highest since July 2024, following the Monetary Authority of Singapore’s decision to tighten monetary policy last July.
Losses were broad-based, with the finance, process industries, and transportation sectors exerting the most drag on the index. Notable decliners included OCBC (-4.9%), HSBC Holdings (-3.5%), DBS Group (-3.4%), Bank Central Asia (-2.8%), and UOB (-2.1%).
