Singapore stocks climb as regional markets show mixed performance

[SINGAPORE] Singapore stocks ended the trading day on a positive note on April 22, outperforming regional peers despite lingering uncertainty over global trade.

The Straits Times Index (STI) advanced 1 per cent, or 36.19 points, to close at 3,795.41. Market breadth was strong, with 359 gainers outpacing 187 decliners. A total of 1.43 billion securities changed hands, amounting to a turnover of $1.48 billion.

Analysts attributed the STI’s strength to a string of upbeat corporate earnings and renewed confidence in Singapore’s economic recovery, led by the manufacturing and finance sectors. The Monetary Authority of Singapore’s (MAS) recent decision to maintain its accommodative monetary policy also lent support, bolstering sentiment among investors.

Offshore and marine firm Seatrium emerged as the top performer on the STI, surging 4.3 per cent, or eight cents, to finish at $1.96.

In contrast, Yangzijiang Shipbuilding led the decliners, slipping 1.8 per cent, or four cents, to $2.21. The drop follows a sharp 9 per cent rally on April 21, sparked by news that the US had eased proposed port fees on China-built vessels. The stock had been on an upward trajectory since April 9, following speculation about a potential softening in the US stance.

Analysts said the pullback in Yangzijiang reflects broader volatility within the global shipping sector, where shifting trade policies and geopolitical tensions continue to cloud investor outlook. While the US’s latest move may offer temporary relief, longer-term risks persist if tensions between Washington and Beijing escalate further. The company had previously faced pressure in February after the United States Trade Representative proposed a fee of up to US$1.5 million (S$1.96 million) per port call on Chinese-built ships.

Meanwhile, Singapore’s trio of local banks continued their upward march. DBS rose 1 per cent, or 43 cents, to $41.85. OCBC climbed 0.8 per cent, or 13 cents, to $16.38, while UOB edged up 0.7 per cent, or 24 cents, to $35.54.

The banks' performance mirrors broader trends in the region, where financial stocks are benefiting from expanding interest margins and solid loan demand. Still, some market watchers warn that inflationary headwinds and the risk of tighter regulations could weigh on the sector going forward.

Across the region, equity markets turned in a mixed performance. The Bursa Malaysia Kuala Lumpur Composite Index lost 0.9 per cent, Japan’s Nikkei 225 dipped 0.2 per cent, and South Korea’s Kospi fell 0.1 per cent. On the other hand, Hong Kong’s Hang Seng Index gained 0.8 per cent, while the IDX Composite in Indonesia jumped 1.4 per cent.

This divergence highlights the uneven effects of global macroeconomic developments. Export-oriented markets such as Japan and South Korea remain under pressure from a weakening US dollar, whereas resource-rich economies like Indonesia are reaping the benefits of higher energy and metal prices.

The regional backdrop was further clouded by geopolitical developments over the Easter weekend. Tensions rose after China issued warnings to countries contemplating trade deals with the US that could disadvantage Beijing, noted Mr Jose Torres, senior economist at Interactive Brokers.

“President Trump’s mounting pressure on the Federal Reserve to lower interest rates is fuelling market instability and driving both stocks and the US dollar lower,” Mr Torres said.

Echoing this sentiment, Bank of Singapore currency strategist Sim Moh Siong observed that the US dollar’s decline has “gained steam, and may continue amid concerns that the Fed’s independence is at risk”.

“The combination of rising long-term interest rates, falling equity markets, and a weaker currency sends a decidedly negative signal for the greenback,” he added.