The STI’s reputation as a defensive index in the region has offered limited protection amid the broader market fallout, he adds in an April 9 note. “The STI is undeniably sensitive to the performance of the banking sector, which just a few months ago, accounted for over 50% of the index’s weight.”
In just two weeks, the STI has tumbled from a record high to its lowest level since September 2024, which marks a near 15% correction.
Risk-off sentiments are gripping global markets as market expectations are recalibrated in response to US President Donald Trump’s trade tariffs, with traders pricing in heightened recession risks and downward revisions to global growth and corporate earnings, says Yeap Jun Rong, market strategist at trading solutions provider IG.
