The Singapore stock market has closed lower now in three straight sessions, and market forecasts say that the downward pressure isn’t finished yet. The financial sector – particularly sensitive to its counterparts on Wall Street – could be in for a rough ride, likely forcing the Straits Times Index to the downside once again on Monday.
The forecast is negative for markets throughout the region as crude oil finished Friday at a fresh record high – putting on more than $10 per barrel last week, so consumers have less cash on hand for other spending and dragging down the U.S. stock markets. Also lending negative sentiment was news that the U.S. trade deficit narrowed by much more than economists had been expecting – but mostly due a decrease in the value of imports, which reflects the slowdown in U.S. consumer spending. Investors also may worry about U.S. CPI data, which is due out on Wednesday.
In line with other regional bourses, the market was slightly lower on Friday as the financials and properties were under heavy selling pressure throughout the session. For the week, the index shed 74.07 points or 2.3 percent.
For the day, the index eased by 9.85 points or 0.3 percent to close at 3,162.03. Volume was 1.4 billion shares worth 1.6 billion Singapore dollars. There were 383 decliners and 228 gainers, with 941 stocks remaining unchanged.
Among the actives, SGX fell 3.0 percent, while Singapore Telecom lost 0.3 percent, City Developments was down 2.5 percent, Keppel Land was down 1.0 percent, CapitaLand fell 1.2 percent, United Overseas Bank was off 0.5 percent and Oversea-Chinese Banking Corp. was down 0.2 percent. DBS Bank was unchanged, while Noble Group closed up 1.2 percent, Olam International closed up 1.4 percent and Singapore Airlines closed up 0.1 percent.
The market inherits weakness from Wall Street as stocks ended Friday’s session considerably lower with credit concerns once again in focus. Continued inflation concerns also added selling pressure to the markets.
AIG said that it swung to a wider than expected first quarter loss, hurt by hefty unrealized market valuation losses on credit swaps as well as capital losses from its investment portfolio. The loss by AIG has once again raised concerns about the health of the economy, as companies continue to grapple with the weak housing market and the fallout from the credit crunch.
The major averages tried to stage a recovery in the final hour of the day but the attempt was unsuccessful. The Dow closed down 120.90 points or 0.9 percent at 12,745.88, the Nasdaq closed down 5.72 points or 0.2 percent at 2,445.52 and the S&P 500 closed down 9.40 points or 0.7 percent at 1,388.28.
With the losses on Friday, the major averages all closed lower for the week after posting notable gains last week. The Dow posted a weekly loss of 2.4 percent, while the Nasdaq and the S&P 500 fell 1.3 percent and 1.8 percent, respectively.
In corporate news, an Indonesian court has rejected an appeal by Singapore investment giant Temasek against a ruling that it breached anti-monopoly laws, according to news Web site Detikom on Saturday. The Central Jakarta district court upheld a November ruling by the Indonesian competition watchdog KPPU, which ordered Temasek to divest its stake in either PT Telkomsel or PT Indosat within two years. Temasek, which as no direct shares in either Indosat or Telkomsel, plans to file an appeal with Indonesia's Supreme Court. But Temasek holds 41 percent in Indosat through subsidiary ST Telemedia, plus 35 percent in Telkomsel through SingTel.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.