The Singapore stock market on Monday halted the seven-day winning streak in which it had spiked more than 120 points or 4.3 percent. The Straits Times Index finished just below the 2,890-point plateau, and now investors are bracing for further damage when the market opens on Tuesday.
The global forecast for the Asian markets suggests consolidation following continued concerns over the Greek debt problem, although bargain hunting may provide support later in the day. Steel stocks figure to fall under pressure, along with properties and technology shares. The European and U.S. markets finished firmly in the red, and the Asian markets are expected to open in similar fashion.
The STI finished sharply lower following losses from the plantation stocks and properties.
For the day, the index fell 27.97 points or 0.96 percent to finish at 2,888.29 after trading between 2,881.68 and 2,907.68 on volume of 1.50 billion shares. There were 255 decliners and 169 gainers. Among the decliners, Noble Group shed 3.3 percent, while Olam International lost 4.2 percent, CapitaLand retreated 1.5 percent, Neptune Orient Lines was down 3 percent and Wilmar International fell 1.1 percent.
The lead from Wall Street is modestly negative as stocks showed a substantial recovery on Monday after moving sharply lower in early trading. Stocks still finished in the red amid renewed concerns that the financial situation in Europe could lead to recession and its potential impact on the global economy.
Adding to the worries about Europe, Greek Finance Minister Evangelos Venizelos angrily rejected a German plan for the euro zone to impose a budget overseer on Greece in return for a new 130 billion euro bailout. Venizelos said the proposal would improperly force his country to choose between "financial assistance" and "national dignity." The report came as European leaders held a summit in Brussels regarding a permanent rescue fund for the euro zone.
Traders also reacted negatively to a report from the U.S. Commerce Department showing that personal spending came in nearly unchanged in December despite a notable increase in personal income. Personal income rose by 0.5 percent in December, although personal spending edged down by less than 0.1 percent. The savings rate reached a four-month high of 4.0 percent.
Selling pressure waned not long after the open, however, and stocks subsequently climbed well off their worst levels of the day. The rebound reflected the recent upward trend for the markets.
Among individual stocks, shares of Gannett (GCI) came under pressure on the day after the newspaper publisher reported a notable drop in advertising revenue at its newspaper division. Meanwhile, Thomas & Betts (TNB) moved sharply higher after the electrical components maker agreed to be acquired by Swiss engineering giant ABB Ltd. (ABB) for $3.9 billion in cash.
The major averages climbed well off their worst levels of the day but finished the day modestly below the unchanged line. The Dow edged down 6.74 points or 0.1 percent to finish at 12,653.72, while the NASDAQ slipped 4.61 points or 0.2 percent to 2,811.94 and the S&P 500 dropped 3.31 points or 0.3 percent to 1,313.02.
In economic news, Singapore will on Tuesday provide final unemployment figures for the fourth quarter of 2011, with analysts expecting the rate to inch higher to 2.1 percent from the previously reported 2.0 percent.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.