Stock market in Singapore might experience a stagnation on Wednesday
Singapore Stock Market Climbs Higher Amid Global Market Uncertainty
The Singapore stock market has shown resilience, climbing higher in two consecutive sessions, with a total gain of more than 50 points or 1.2 percent. However, the overall global forecast for Asian markets remains weak due to renewed tariff concerns.
On Tuesday, the Straits Times Index (STI) finished modestly higher, with improvements by 11.35 points or 0.27 percent. Several other stocks, including United Overseas Bank, UOL Group, Genting Singapore, Hongkong Land, Mapletree Pan Asia Commercial Trust, CapitaLand Integrated Commercial Trust, SingTel, and Frasers Centrepoint Trust, were unchanged.
The current tariff situation, particularly the aggressive and complex tariff regime imposed by the United States under the Trump administration since early 2025, has created uncertainty and pressure on Singapore’s market. The tariffs, which include a 55% effective tariff on many Chinese goods and steep "reciprocal" tariffs on Southeast Asian countries like Vietnam (46%) and Thailand (36%), have disrupted supply chains and trade flows, affecting export-driven industries and logistics.
Key sectors such as logistics and aviation, represented by companies like SATS, have experienced profit pressures partly due to the cancellation of duty-free policies for small-scale goods. The electronics and pharmaceutical sectors face difficulties from the 25% tariffs on pharmaceuticals and semiconductors, which are important export industries for Singapore. Supply chain fragmentation and reduced entrepot trade volumes may dampen market sentiment.
Despite these headwinds, Singapore markets have also seen some opportunities, such as intensified competition in its cryptocurrency sector due to U.S. regulatory changes. Analysts warn that if tariffs continue to dampen trade, Singapore’s SMEs, jobs, and overall markets could feel outsized negative effects.
In the midst of these challenges, some stocks initially benefited from a positive reaction to some of the latest earnings news, including upbeat quarterly results from software company Palantir (PLTR). However, the lead from Wall Street is soft, with the major averages opening slightly higher but quickly turning lower and closing near session lows. The Dow Jones Industrial Average slipped by 61.90 points or 0.14 percent, the NASDAQ Composite sank by 137.03 points or 0.65 percent, and the S&P 500 dropped by 30.75 points or 0.49 percent.
Among the active stocks in Singapore, CapitaLand Ascendas REIT decreased by 1.79 percent, CapitaLand Investment dropped by 1.07 percent, City Developments fell by 0.80 percent, Comfort DelGro increased by 1.97 percent, DBS Group added 0.73 percent, DFI Retail Group strengthened by 1.45 percent, Keppel DC REIT lost 0.43 percent, Keppel Ltd improved by 0.84 percent, Mapletree Industrial Trust declined by 0.50 percent, Mapletree Logistics Trust skidded by 0.85 percent, Oversea-Chinese Banking Corporation collected 0.47 percent, SATS climbed by 1.26 percent, Seatrium Limited gained 0.43 percent, SembCorp Industries fell by 0.26 percent, Singapore Technologies Engineering advanced by 1.02 percent, Thai Beverage rallied by 2.17 percent, Wilmar International rose by 0.34 percent, Yangzijiang Financial sank by 0.52 percent, and Yangzijiang Shipbuilding remained unchanged.
The Institute for Supply Management reported a modest slowdown in the pace of growth by the U.S. service sector activity in July, and crude oil prices fell on Tuesday due to US pressure on India to stop buying oil from Russia and OPEC's recent decision to boost production. West Texas Intermediate crude for September delivery slumped $1.05 or 1.58 percent to $65.24 per barrel.
President Donald Trump announced plans for new tariffs on semiconductors and chips, to be announced next week, and stated that potential tariffs on pharmaceuticals imported into the U.S. could reach as high as 250 percent. These tariff concerns, if implemented, could further impact the Asian markets, particularly Singapore.
In conclusion, the Singapore stock market has shown resilience amid global market uncertainty, but the ongoing tariff situation poses risks to growth and investor confidence. The market will continue to navigate these challenges, seeking opportunities amid the disruptions.
Financial analysts are closely monitoring the Singapore stock market, watching its resilience amid global market uncertainty, as it climbs higher in two consecutive sessions. However, the ongoing tariff situation, particularly the aggressive and complex tariff regime, creates uncertainty and pressure on Singapore’s market, raising concerns for investors about further investing in the stock-market.
