Singapore stocks end Friday in the red amid mixed Asia markets; STI down 0.4%

[SINGAPORE] Local stocks ended its rally to close lower on Friday (Aug 8), following a mixed performance across Asian markets as investors navigated a week marked by geopolitical uncertainties and corporate earnings.

The blue-chip Straits Times Index (STI) was down 0.4 per cent or 18.32 points at 4,239.83. Across the broader market, decliners outnumbered gainers 344 to 190, with 1.3 billion securities worth S$2 billion changing hands.

The week closed with mixed moves across Singapore and the region, as earnings reports took centre stage over broader macro themes such as global trade and interest rates, said Geoff Howie, market strategist at the Singapore Exchange.

“Earnings momentum is expected to build in Singapore next week, while market attention shifts back to broader macroeconomic themes,” he told The Business Times.

Howie noted that next Tuesday (Aug 12) will be pivotal, with markets closely watching the release of July’s US consumer price index data and the scheduled expiry of the 90-day pause on US-China trade tariffs.

On the STI, DBS was the top gainer. It rose 2 per cent or S$0.99 to S$50.74, after reporting a second-quarter net profit of S$2.82 billion on Thursday.

At the bottom of the index was Sembcorp. It fell 13.8 per cent or S$1.08 to S$6.72, after posting a 1 per cent dip in first-half earnings to S$536 million. The drop was due to lower turnover from its gas business.

The other two local banks ended in negative territory, with OCBC falling 1.8 per cent or S$0.30 to S$16.79 and UOB closing 0.3 per cent or S$0.11 lower at S$35.70

Elsewhere in the region, markets closed mixed on Friday. Among the gainers, Japan’s Nikkei 225 rose 1.9 per cent and Malaysia’s KLCI added 0.5 per cent. Meanwhile, South Korea’s Kospi declined 0.6 per cent and Hong Kong’s Hang Seng Index dropped 0.9 per cent.

Despite the uneven finish, Asian equity markets turned in a bullish performance with all sectors gaining this week. This was supported by June quarter earnings looking strong, said Kai Wang, Asia equity market strategist at Morningstar.

He noted that most of this week’s top contributors were tech or Internet stocks, suggesting that markets remain driven by secular AI trends. This may be reflected in the US market as well given some of the robust growth shown in the earnings of the US “Magnificent 7” – a group of mega-cap tech companies – Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia and Tesla.

“We think that some of these positive results should translate into further bullishness for major China communication services and internet platform names as we continue into earnings season,” he added.