SINGAPORE, April 16, 2026, 18:26 SGT
Singapore’s Straits Times Index slipped 13.37 points, or 0.27%, to wrap up at 5,007.83 on Thursday. The retreat in the benchmark followed declines in the trio of local banks and Singtel, erasing gains from other corners of the market. Olam, though, surged almost 8%, while Asian equities in general found support on optimism for renewed U.S.-Iran diplomatic talks.
The dip barely nudged the benchmark from its tight band. STI still held above the 5,000 mark it recaptured on Wednesday. It’s roughly 0.7% under February’s record high of 5,041.33 — close enough for traders to stay interested, but not quite at breakout territory.
The STI, which tracks the 30 biggest stocks on SGX by market cap, followed the banks lower. DBS eased 0.69% to S$57.30. OCBC ended 0.96% down at S$22.66. UOB gave up 0.19% to close at S$37.52. Singtel wasn’t spared either, dropping 1.83% to S$4.83.
Olam jumped close to 8% after clinching the last regulatory green light required for its Olam Agri divestment. The company still intends to offload its remaining 64.57% holding in Olam Agri to Saudi Agricultural & Livestock Investment Company, or SALIC. Shares of ST Engineering, Keppel, and SGX also edged higher on Thursday.
Singapore underperformed other Asian markets. According to Reuters market data, Japan’s Nikkei 225 jumped 2.38% to finish at 59,518.34, while Hong Kong’s Hang Seng Index gained 1.72%, closing at 26,394.26 on Thursday. Both the S&P 500 and Nasdaq had just notched fresh record closes overnight, as easing war jitters and upbeat earnings sentiment helped steady global risk appetite.
This all comes as Singapore faces a mix of improved global sentiment and lingering domestic headwinds—higher fuel prices and supply-chain snags haven’t gone away. The Monetary Authority of Singapore, which manages policy through currency moves instead of interest rates, nudged its stance tighter on Tuesday. It also bumped up its 2026 inflation outlook to 1.5%-2.5%, cautioning that the war in Iran could push import costs higher. Early GDP figures showed the first quarter expanded 4.6% year-on-year but slipped 0.3% from Q4. Maybank economist Chua Hak Bin saw the MAS decision as leaving room for action in July and said another tightening “cannot be ruled out.” For Standard Chartered’s Edward Lee, it comes down to whether “inflation expectations become a worry.” Reuters
Still, some strategists are sticking with local sectors. Shekhar Jaiswal, who heads equity research at RHB, points to construction as a “clear” domestic growth driver for Singapore stocks, arguing there’s a “structural demand floor” that should last through at least 2029. On Thursday, that narrative found support on the tape: ST Engineering managed to climb 0.53%, even as the main index slipped. The Business Times
Even so, there’s not much slack in the market for any surprises. Oil’s pulled back to about $95 a barrel after hovering near $120, as traders start to price in a possible settlement. Still, Reuters noted that global markets remain sensitive to every diplomatic headline, and MAS has flagged “considerable risks” for both inflation and growth. Thursday’s dip looked more like a pause than a real pullback: STI is up 1.46% over the last month and 34.61% from a year earlier. But the index lagged behind Tokyo and Hong Kong, underscoring just how easily Singapore’s defensive market can drop out of step with the rest of the region. Reuters
