Singapore stocks plunged on Nov 6, with the benchmark Straits Times Index (STI) shedding 117.08 points, or 2.21%, to close at 5,179.17, as a global technology sell-off and concerns over tighter US artificial intelligence (AI) regulations rattled investor sentiment.
The decline mirrored heavy losses across Asian markets after Wall Street’s technology-driven slump on Nov 5, fuelled by fears that Democratic victories in the US midterm elections could lead to stricter oversight of the AI industry.
Concerns over stretched AI valuations, soaring data centre investment costs and uncertain returns further intensified selling pressure across semiconductor and technology stocks.
Losses were widespread on the Singapore Exchange, with 28 of the STI’s 30 constituents ending lower.
Yangzijiang Shipbuilding was the biggest decliner, falling 6.5% to S$4.35, while Singapore Technologies Engineering dropped about 5.5%.
Banking heavyweights also weighed on the index. DBS Group slipped 2.1% to S$69.72, United Overseas Bank declined 2.5% to S$36.88, while Oversea-Chinese Banking Corporation fell 0.7% to S$27.73 despite reporting better-than-expected third-quarter earnings.
SATS was the sole STI constituent to finish higher, edging up 0.5% to S$3.73.
The broader sell-off extended across Asia, with Japan’s Nikkei 225 and South Korea’s Kospi both plunging about 6%, while Hong Kong’s Hang Seng Index declined around 1.3%.
The sharp retreat highlighted growing investor caution over AI-related investments and the potential impact of tighter US regulation on global technology spending.