[SINGAPORE] The Straits Times Index (STI) closed down on Friday (Apr 11), along with most regional indices.
The STI closed down 1.8 per cent or 65.3 points at 3,512.53.
The trio of local banks lost ground, with DBS coming in as the biggest loser on the STI, settling 3.9 per cent or S$1.54 lower at S$38.13.
OCBC shed 2.7 per cent or S$0.42 to S$15.01. UOB declined 2.2 per cent or S$0.74 to S$32.47.
The biggest gainer was Mapletree Logistics Trust, which added 0.9 per cent or S$0.01 to close at S$1.08.
Across the broader market, decliners outnumbered advancers 257 to 241, as 1.5 billion shares worth S$1.9 billion changed hands.
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Major indices across the region were mixed. The Kospi decreased 0.5 per cent, the Nikkei 225 shed 3 per cent and the KLCI declined 0.6 per cent. However, Hong Kong’s Hang Seng Index closed 1.1 per cent higher.
Heightening tensions between US and China is taking centre stage, with markets reversing from Wednesday’s gains noted Jose Torres, senior economist at Interactive Brokers. March’s US consumer price index offered a surprise, showing signs of deflation.
But investors’ focus is on the reasons for the declining costs, with consumer endurance, pricing power and corporate margins top of mind, he noted.
He added that trade deals could turn into market tailwinds, but with no smooth path for the US to achieve beneficial trade deals while reducing the fiscal deficit, some turbulence is expected. As trade deals are cemented, confidence will be restored.
“The strong tailwinds of US President Donald Trump’s policy mix are on their way, and once those factors begin to coincide with a clearer journey ahead on trade, the bull market in stocks will resume,” said Torres.
