The Singapore stock market has ended lower in consecutive trading days, sinking more than 65 points or 2.1 percent along the way. The Straits Times Index now sits just above the 3,185-point plateau and it's expected to open under pressure again on Tuesday.
The global forecast for the Asian markets suggests further consolidation thanks to the ongoing Russian invasion of Ukraine and skyrocketing crude oi prices. The European and U.S. markets were down and the Asian bourses figure to open in a similar fashion.
The STI finished sharply lower on Monday following losses from the financial shares, property stocks and industrials.
For the day, the index skidded 38.96 points or 1.21 percent to finish at 3,187.82 after trading between 3,186.01 and 3,222.61. Volume was 2.2 billion shares worth 1.8 billion Singapore dollars. There were 355 decliners and 207 gainers.
Among the actives, CapitaLand Integrated Commercial Trust fell 0.47 percent, while City Developments dropped 0.57 percent, Comfort DelGro plunged 3.55 percent, Dairy Farm International plummeted 6.82 percent, DBS Group declined 2.12 percent, Genting Singapore sank 0.65 percent, Hongkong Land tanked 2.96 percent, Keppel Corp lost 0.50 percent, Mapletree Commercial Trust shed 0.55 percent, Oversea-Chinese Banking Corporation stumbled 1.20 percent, SATS surrendered 2.56 percent, SembCorp Industries advanced 0.75 percent, Singapore Airlines retreated 1.58 percent, Singapore Exchange weakened 0.84 percent, Singapore Technologies Engineering slid 0.25 percent, Thai Beverage slumped 0.75 percent, United Overseas Bank skidded 1.39 percent, Wilmar International added 0.64 percent, Yangzijiang Shipbuilding tumbled 2.68 percent and Mapletree Logistics Trust, Ascendas REIT, Singapore Press Holdings and SingTel were unchanged.
The lead from Wall Street is broadly negative as the major averages opened lower on Monday and saw the losses accelerate as the session progressed, ending near their worst levels of the day.
The Dow plummeted 797.42 points or 2.37 percent to finish at 32,817.38, while the NASDAQ plunged 482.48 points or 3.62 percent to close at 12,830.96 and the S&P 500 dropped 127.78 points or 2.95 percent to end at 4,201.09.
Concerns about the impact of the recent surge in oil prices contributed to the sell-off on Wall Street as crude for April delivery surged on Monday, lifted by concerns over global oil supplies amid talks the U.S. and its Western allies are likely to impose a ban on Russian oil. West Texas Intermediate Crude oil futures for April ended higher by $3.72 or 3.2 percent at $119.40 a barrel.
Higher crude oil prices are already impacting prices at the pump as the national average for a gallon of gas has reached a 14-year high of $4.065. The increase in gas prices is likely to weigh on consumers, who are already grappling with higher prices due to elevated inflation.
This all comes as the Federal Reserve prepares to raise interest rates by at least a quarter point at its monetary policy meeting next week.