Singapore Markets Brace for Decline Amid Escalating Middle East Tensions

The Singapore stock market is poised for a soft start on Friday, extending a downward trend that saw the Straits Times Index (STI) slide nearly 60 points over two consecutive trading sessions. The index closed Thursday at 4,944.11, representing a 1.17% decline, as investors reacted to a cocktail of global headwinds. Market sentiment has been severely dampened by escalating tensions between the U.S. and Iran. President Donald Trump's directive to the Navy to engage vessels placing mines in the Strait of Hormuz has heightened fears of a broader conflict, coinciding with the closure of the critical waterway. This geopolitical volatility has pushed West Texas Intermediate (WTI) crude for June up 2.68% to $95.45 per barrel. The ripple effects were felt across global bourses. Wall Street saw the NASDAQ fall 0.89% and the S&P 500 drop 0.41%, driven by profit-taking following recent record highs and a lack of updated full-year guidance from IBM despite a first-quarter earnings beat. In Singapore, the downturn was broad-based across financials, property, and industrial sectors. Hongkong Land plummeted 4.04% and Keppel Ltd dropped 3.41%, while financial heavyweights like DBS Group and OCBC also saw losses. Conversely, Thai Beverage surged 3.66%, providing a rare bright spot in an otherwise bearish session.