SINGAPORE – Local investors were left in a quandary on January 10, grappling for direction as Wall Street remained closed in observance of former President Jimmy Carter’s memorial service.

This unexpected closure came just before the critical release of US job figures, heightening the air of uncertainty in the market.

Market Decline and Banking Sector Impact

The result was a significant decline in the Straits Times Index (STI), which fell by a staggering 1.6%, or 61.04 points, closing at 3,801.56. The banking sector bore the brunt of the downturn, with a clear majority of stocks declining.

On the trading floor, losers outpaced gainers by a count of 346 to 192, with a total trading volume of 898.6 million shares valued at $1.2 billion.

Individual Bank Performances

After recently hitting record highs, local lenders faced a tough day. DBS bank saw its shares drop 1.9% to $44.13, while OCBC fell 2.3% to $17.10. UOB fared similarly, down 2% at $36.82.

Notably, OCBC Investment Research downgraded UOB’s stock to a "hold" rating in a report, highlighting that its shares had recently surged and reached a fair valuation of $37.50, indicating that further gains might be limited.

Other Sector Developments

In the maritime sector, Yangzijiang Shipbuilding experienced a sharp decline of 3.5%, closing at $3 after plummeting 5% by the midday break. It was among the most actively traded stocks, with about 25.7 million shares changing hands.

Unsurprisingly, none of the stocks within the 30 STI constituents managed to gain, while four companies, namely DFI Retail Group, Mapletree Logistics Trust, Sats, and UOL, ended the day flat.

Regional Market Sentiments

Across the region, key indexes mirrored the cautious sentiment. Hong Kong’s Hang Seng index dropped 0.9%, South Korea’s Kospi fell by 0.2%, and Japan's Nikkei 225 slid 1.1%. However, Malaysian shares showed a slight uptick of 0.1%.

In Australia, the markets also slipped by 0.4%, with banking stocks notably taking a hit amid investor apprehension ahead of the upcoming US employment data.

Investor Concerns Ahead of Job Report

Wall Street futures pointed to a possible downturn as investors braced for robust job numbers, sparking concerns that the US Federal Reserve might maintain interest rates.

Additionally, reports about extensive insurance liabilities stemming from recent wildfires in Los Angeles further dampened market sentiment.

Outlook

As the world awaits the US job report, traders are undoubtedly hoping for clarity in an otherwise rocky financial landscape. Will the upcoming data shift the trends or send markets spiraling further? Only time will tell!