Dip mirrors loss in global equity markets on fears Israel’s strikes on Iran could stoke wider regional conflict
[SINGAPORE] Local stocks ended lower on Friday (Jun 13), in line with losses in global markets as tensions in the Middle East led investors to cut their risk exposure ahead of the weekend.
Iran sent drones towards Israel, to retaliate against the latter’s airstrikes on its nuclear and military infrastructure. The moves are stoking fears of a wider regional conflict, leading Asian and European stocks to tumble. US index futures also slipped in pre-market trade.
The weekend could bring new developments as the US and Iran are expected to meet in Oman on Sunday to discuss Iran’s nuclear programme.
“Oil and defence stocks will likely benefit from rising tensions, but the rest of the market should remain under pressure,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
In Singapore, the benchmark Straits Times Index (STI) fell 0.3 per cent or 10.78 points to end at 3,911.42. Across the broader market, losers beat gainers 359 to 160, with around one billion securities worth S$1.3 billion changing hands.
Jardine Matheson was the top blue-chip gainer, rising 1.8 per cent or US$0.80 to US$45.44. Seatrium was the biggest decliner, falling 2.8 per cent or S$0.06 to S$2.06.
The trio of local banks ended lower. DBS dropped 0.5 per cent or S$0.22 to S$44.45; OCBC closed 0.5 per cent or S$0.08 lower at S$16.06; and UOB shed 0.4 per cent or S$0.14 to S$34.95.
Markets in nearly all Asian markets slid, with China’s Shenzhen Component leading the declines, shedding 1.1 per cent. That was followed by Taiwan’s Taiex, which fell nearly 1 per cent. South Korea’s Kospi and Japan’s Nikkei 225, each ended nearly 0.9 per cent lower.
Copyright SPH Media. All rights reserved.
