Singapore stocks gain amid global market caution

[SINGAPORE] Singapore stocks climbed on May 20, tracking overnight gains on Wall Street, as investors brushed off Moody’s downgrade of the United States’ sovereign credit rating.

Although only a third of the blue-chip Straits Times Index (STI) constituents closed in the green, the benchmark still managed a modest advance of 0.2 per cent, or 6.3 points, finishing the session at 3,882.5.

The market’s resilience aligns with broader trends across Asian equities, which have shown relative stability amid ongoing global economic headwinds. Analysts credit the steady performance to robust corporate earnings and continued foreign capital inflows, particularly into technology and consumer sectors. However, some warn that geopolitical tensions and volatility in commodity prices could pose risks in the near term.

Gains in Singapore came as US stocks ended higher, even after the loss of America’s top-tier credit rating and China’s decision to slash two key interest rates to record lows on May 20.

Despite the positive sentiment, JPMorgan Chase CEO Jamie Dimon cautioned investors against becoming overly complacent, pointing to persistent risks surrounding inflation and credit markets.

“People feel pretty good because you haven’t seen an effect of tariffs,” Dimon said. “The market came down 10 per cent, it’s back up 10 per cent; I think that’s an extraordinary amount of complacency.”

His concerns echo those voiced by global financial institutions such as the International Monetary Fund (IMF), which recently highlighted persistent inflation and surging debt levels as significant threats to global financial stability. While central banks like the US Federal Reserve have signaled a more cautious stance on future rate hikes, market watchers remain alert to potential shocks from sustained high interest rates.

On the broader Singapore bourse, losers outnumbered gainers 263 to 195, with 1.02 billion securities changing hands for a total value of $1.03 billion.

Real estate investment trusts (REITs) were among the day’s top performers, buoyed by investor appetite for stable income amid the uncertain rate landscape. CapitaLand Integrated Commercial Trust and Mapletree Pan Asia Commercial Trust posted modest gains, reflecting renewed confidence in Singapore’s retail and office property segments.

Food Empire emerged as a notable gainer, hitting a 52-week high of $1.77—up 7 cents, or 4.1 per cent. The food and beverage group reported a 16.3 per cent increase in revenue to US$136.6 million (S$177 million) for the first quarter of financial year 2025, driven by strong sales in Vietnam.

The upbeat performance in Vietnam highlights the strategic significance of Southeast Asia for Singaporean firms looking to diversify beyond Western markets. With Vietnam’s economy growing at over 5 per cent annually, analysts see ample potential for expansion in consumer-driven sectors.

Meanwhile, Singapore Post slipped 0.9 per cent, or 0.5 cent, to close at 56.5 cents. The decline came a day after the postal service provider announced a broadened partnership with global logistics giant FedEx, enabling FedEx parcel drop-offs at all SingPost branches across the island.