Shares of DBS fell as much as 3.3% to S$61.63 on the morning of June 10, erasing more than S$6 billion in market value from the bank, which was valued at around S$180 billion before the selloff [1, 2]. The decline in DBS shares weighed on the wider market, causing the Straits Times Index (STI) to drop as much as 1.7%, hitting a low of 4,939.53 points in early trading in Singapore [1, 2].
Singapore equities were broadly lower in the first hour of trading on June 10, with major technology stocks including AEM also losing ground, following a reversal on Wall Street after two days of gains [1, 2]. On June 9, the S&P 500 and Nasdaq indexes fell as optimism around technology shares faded [1, 2].
The market reaction came after the United States launched fresh airstrikes against Iran on June 9 in response to Iran downing an Apache helicopter in the Strait of Hormuz [1, 2]. The strikes fueled geopolitical tensions and triggered concerns among investors.
Energy markets were also affected, with West Texas Intermediate (WTI) crude oil prices rising more than 1% to over US$89 per barrel after the US attacks [1, 2].
The next notable market event will be closely watched trade sessions following the heightened Middle East tensions and their impact on regional equities and global oil prices.
