Singapore stocks ended lower on Wednesday, June 10, following new US strikes against Iran and retaliatory Iranian attacks on US bases in the Gulf region [1, 2]. The Straits Times Index (STI) lost 1.3%, or 64.4 points, to close at 4,958.85, after falling as much as 1.7% during the day [1, 2].
Among STI constituents, Wilmar International bucked the broader decline, rising 3.2% or S$0.11 to close at S$3.50 [1, 2]. Conversely, Thai Beverage was the weakest performer, falling 3.4% or S$0.015 to close at S$0.425 [1, 2].
Singapore's three major banks also closed lower, with DBS down 3% or S$1.93 at S$61.83 after dipping as low as S$61.63, OCBC down 2.4% or S$0.57 at S$23.23, and UOB down 1.3% or S$0.50 to S$37.88 [1, 2]. Technology stocks such as AEM declined alongside falls in US markets, where rebounds in tech shares faded [1, 2].
On the iEdge Singapore Next 50 Index, First Resources gained 5% or S$0.13 to close at S$2.72, while UMS Integration slipped 3.2% or S$0.08 to S$2.43 [1, 2]. Across the broader market, losers outnumbered gainers 337 to 260, with 1.5 billion shares traded worth S$2.6 billion [1, 2].
Regional markets were mixed on the same day. Hong Kong’s Hang Seng fell 0.6%, Japan's Nikkei 225 dropped 1.9%, South Korea's Kospi declined 4.5%, while Malaysia's FTSE Bursa KLCI gained 0.2% [1, 2].
West Texas Intermediate crude oil prices rose more than 1% to above US$89 a barrel after the attacks, before easing to US$87.90 in Asia evening trade [1, 2]. Nigel Green, CEO of deVere Group, said, "If markets begin to assume that disruptions in the Gulf are likely to recur, energy prices could stay volatile. The biggest economic threat may be the gradual acceptance that this confrontation is becoming increasingly entrenched, creating a cycle of recurring instability." [1]
The market drop on June 10 reflected investor concerns over wider geopolitical risks following renewed US-Iran conflict and retaliatory strikes in the Gulf [1, 2].
