Investors are taking caution over trade tensions' effect on local sentiment.
The Straits Times Index (STI) ended 29.76 points or 0.91% lower to 3238.94, taking the year-to-date performance to -4.82%.
The top active stocks were DBS, which slipped 0.86%, Singtel, which fell 0.97%, UOB, which declined 0.49%, Genting Sing, which dipped 0.82% and OCBC Bank, with a 1.12% fall.
The FTSE ST Mid Cap Index declined 0.84%, whilst the FTSE ST Small Cap Index fell 0.44%.
OCBC Investment Research noted that US stocks kicked off the third quarter on a positive note Monday, with the main indexes reversing early losses to finish higher on the back of a rally in technology shares. However, worries over trade tensions between the US and its major trading partners lingered, weighing on investors’ sentiment.
Seven out of eleven S&P 500 industries ended higher, led by Information Technology (0.99%) and Utilities (0.79%) whilst Energy (-1.55%) and Consumer Staples (-0.50%) led the declines.
"Despite the gains on Wall Street overnight, we expect the local bourse to trade cautiously today as trade tensions continue to weigh on local sentiment," OIR said.
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