Singapore stocks fall as trade tariff concerns re-emerge overnight; STI down 0.7%

SINGAPORE stocks fell in tandem with other regional markets on Friday (Feb 28) as investors reassessed the potential impact of tariffs imposed by US President Donald Trump.

The Straits Times Index (STI) fell 0.7 per cent or 25.49 points to 3,895.70. Across the broader market, losers beat gainers 379 to 226 after 2.1 billion securities worth S$2.4 billion were traded.

IG market strategist Yeap Jun Rong said: “Any implementation of tariffs may pose downside risks to global growth, potentially bringing about higher business costs, inflationary pressures on consumers, and weaker global trade activities.”

He added that Trump’s tone on tariffs overnight suggests “a tougher path to consensus” with trading partners than initially expected.

Furthermore, he noted that the market’s reaction has been to de-risk as concerns over growth were reinforced by weaker US data. These included higher-than-expected jobless claims, flat core durable goods orders and disappointing pending home sales.

Similarly, Bank of Singapore currency strategist Sim Moh Siong said that he expected the US dollar to strengthen on higher US yields, as markets were “shaken out of tariff complacency” overnight.

Regional markets were also in the red on Friday. South Korea’s Kospi shed 3.4 per cent, Hong Kong’s Hang Seng Index declined 3.3 per cent, Japan’s Nikkei 225 fell 2.9 per cent, and the Kuala Lumpur Composite Index fell 0.8 per cent.

On the STI, ST Engineering was the top gainer. It rose 3 per cent or S$0.16 to S$5.41.

Meanwhile, Seatrium was at the bottom of the table. The counter fell 3.2 per cent or S$0.07 to S$2.11.

Local banks also closed in the red on Friday. UOB shed 0.8 per cent or S$0.31 to S$38.20, while OCBC fell 0.9 per cent or S$0.16 to S$17.21 and DBS declined 1.5 per cent or S$0.71 to S$45.90.