Straits Times Index Under Pressure as Key Support Level at 4,500 Weakens

The Singapore stock market faces mounting headwinds as the Straits Times Index (STI) continues its downward trajectory, having lost nearly 50 points or approximately 1.2 percent over three consecutive trading sessions. Currently hovering just above the critical 4,500-point threshold, the benchmark index appears vulnerable to further declines, with opening signals pointing to another negative session on Tuesday.

Market Context and Global Dynamics

The broader Asian market outlook remains cautious ahead of this week’s Federal Reserve monetary policy announcement. With Wall Street posting mixed but ultimately negative performance and European bourses showing restraint, regional markets are bracing for continued volatility. The prevailing market sentiment suggests Asian exchanges will likely mirror the soft tone emanating from developed markets.

On Monday, the STI retreated 24.28 points, or 0.54 percent, closing at 4,507.08. Throughout the session, the index oscillated between 4,502.88 and 4,534.44, reflecting investor uncertainty and cautious positioning ahead of the FOMC decision.

Sector-Specific Weakness

The decline was broadly distributed across major sectors. Financial shares, real estate stocks, and industrial counters all contributed to the downward pressure. Notable performers included:

CapitaLand Integrated Commercial Trust, which deteriorated 1.72 percent, while CapitaLand Ascendas REIT declined 0.72 percent. DFI Retail Group was among the harder-hit names, plummeting 2.20 percent. Property-related weakness extended to City Developments (down 0.96 percent) and UOL Group (down 0.70 percent).

Transportation and logistics names also struggled, with Comfort DelGro surrendering 1.39 percent and SATS dropping 0.58 percent. Banking sector representatives including DBS Group (down 0.35 percent) and Oversea-Chinese Banking Corporation (retreating 1.00 percent) added to the selling pressure.

Among infrastructure and industrial players, Hongkong Land and SembCorp Industries both fell 1.50 percent, Keppel Ltd stumbled 1.27 percent, and Yangzijiang Shipbuilding tumbled 1.17 percent. Telecommunications name SingTel lost 0.44 percent alongside Keppel DC REIT, while Singapore Technologies Engineering managed marginal gains of 0.24 percent. Venture Corporation provided rare strength, climbing 1.14 percent.

U.S. Markets Signal Broader Caution

The weakness in Singapore reflects the prevailing sentiment from Wall Street, where the major indices surrendered early gains to close substantially lower. The Dow Jones Industrial Average fell 215.67 points or 0.45 percent to 47,739.32. The NASDAQ declined 32.22 points or 0.14 percent to 23,545.90, while the S&P 500 dropped 23.89 points or 0.35 percent to finish at 6,846.51.

Market participants attributed the pullback to profit-taking after recent strength that had lifted both the NASDAQ and S&P 500 to their best closing levels in a month last Friday. However, trading volumes remained somewhat subdued as investors adopted a cautious stance ahead of the Federal Reserve’s Wednesday announcement, widely expected to include a quarter-point rate reduction. Market observers will be closely monitoring the Fed’s accompanying statement for signals regarding the probability of additional rate cuts in 2025.

Energy Markets Under Pressure

Crude oil prices extended losses on Monday as the strengthening U.S. dollar intensified selling pressure ahead of the Federal Reserve’s rate decision—a development that has largely been priced into the market. West Texas Intermediate crude for January delivery declined $1.28, or 2.13 percent, settling at $58.80 per barrel.

The convergence of weakening sentiment across equities and energy markets reinforces the risk-off tone currently dominating global financial markets, with the critical support level at 4,500 points emerging as a key battleground for the Singapore index.