The Impact of Wall Street Sell-Off on Singapore Stocks
On November 18, equities in Singapore ended their three-day winning streak to finish lower after a sell-off on Wall Street on November 15. Investors turned cautious amid inflation worries under a potential second Donald Trump presidency. The benchmark Straits Times Index (STI) was down 0.3 per cent, closing at 3,732.55. Gainers outnumbered losers 278 to 260, with 1.1 billion securities worth $1.2 billion changing hands.
Regional Indexes Performance
- Japan’s Nikkei 225 ended 1.1 per cent lower
- South Korea’s Kospi Composite Index was up 2.2 per cent
- Hong Kong’s Hang Seng Index closed 0.8 per cent higher
Stock Performance on STI
ST Engineering fell the most, losing 5.5 per cent, after the company posted a third-quarter business update. On the other hand, Singapore Exchange (SGX) gained 4.3 per cent, with Morgan Stanley upgrading the stock to “overweight” and raising its price target.
Expert Insights on Singapore Market
Morgan Stanley believes Singapore has the potential to boost the vibrancy of its equity market, leading to benefits for the valuations of Singapore stocks, especially for SGX. The bank expects the Monetary Authority of Singapore’s review group to announce interim measures, providing stock catalysts over the next nine months. Improving trading liquidity is seen as crucial for narrowing the valuation discount to peer markets and attracting new listings.
The bank also anticipates a broad-based valuation uplift across stocks and sectors, with a focus on larger-cap index stocks that attract institutional investor interest. The trio of local banks – DBS Bank, OCBC, and UOB – ended the day mixed, reflecting market uncertainties.
Conclusion
While Singapore stocks experienced a dip following the Wall Street sell-off, expert opinions suggest the market has the potential for growth and increased vibrancy. With strategic measures in place, the future outlook remains optimistic despite short-term fluctuations.
FAQ
What caused the decline in Singapore stocks?
The sell-off on Wall Street and concerns over potential inflation under a second Donald Trump presidency contributed to the decline in Singapore stocks.
Which stock performed the best on the STI?
Singapore Exchange (SGX) was the top performer on the STI, gaining 4.3 per cent and receiving an upgrade from Morgan Stanley.