The Singapore stock market is expected to open lower on Tuesday, following back-to-back declines that have dragged the Straits Times Index (STI) below the 3,900-point level. The losses may deepen as global markets remain under pressure due to recession fears and concerns over economic growth.
The STI closed 15.41 points or 0.39% lower on Monday at its daily low of 3,899.07 after reaching an intraday high of 3,922.66. Financial, property, and industrial stocks led the losses.
Among the actively traded stocks, City Developments declined 1.19%, Singapore Technologies Engineering fell 1.14%, and SingTel tumbled 1.75%. Meanwhile, Frasers Logistics & Commercial Trust surged 1.79%, Seatrium Limited gained 1.43%, and UOL Group rose 1.38%.
The negative sentiment in Singapore follows a sharp sell-off on Wall Street, where major indices extended losses throughout Monday's session. The Dow Jones Industrial Average plunged 890.01 points or 2.08% to 41,911.71, the NASDAQ tumbled 727.90 points or 4.00% to 17,468.32, and the S&P 500 dropped 155.64 points or 2.70% to 5,614.56.
Investor sentiment weakened as concerns over economic growth and corporate earnings intensified. Uncertainty escalated after US President Donald Trump declined to rule out a potential recession following his tariff measures on Mexico, Canada, and China.
With key economic data on consumer and producer price inflation expected later in the week, markets are likely to remain cautious.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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