STI stocks fall, as SIA, Genting, Sembcorp, OCBC tumble

[SINGAPORE] Shares of several Straits Times Index (STI) constituents fell in early trade on Friday (Aug 8), on the impact of earnings and amid tariffs kicking in.

Sembcorp suffered the steepest decline, as it dived more than 13 per cent. It was last down 13.1 per cent at S$6.78. On Friday, before the market opened, it reported earnings that fell 1 per cent to S$536 million for the first half ended Jun 30, on the back of lower turnover from its gas business.

Genting Singapore was down nearly 4 per cent to S$0.725. On Thursday, after market close, it reported H1 profit that fell 34 per cent to S$234.7 million on weaker gaming and room revenue. Singapore Airlines were more than 4 per cent to trade at S$6.55, while OCBC fell 2.3 per cent to S$16.69. Both companies went ex-dividend on Friday.

The STI was down 0.4 per cent.

Higher US tariffs came into effect on Thursday, with duties at a baseline rate of 10 per cent for many countries and between 15 and 41 per cent for some.

The counters of a slew of semiconductor companies in Singapore also fell as US President Donald Trump announced on Thursday that he would slap a 100 per cent tax on imports that include semiconductors produced outside the US.

UMS declined more than 5 per cent to S$1.44, while Frencken tumbled more than 5 per cent to S$1.59. AEM lost 4.5 per cent to trade at S$1.50.

Analysts had earlier said that it might affect semiconductor-related companies in Singapore and Malaysia.

In a Friday note, CGSI said Frencken will get indirect exposure via Dutch semiconductor giant ASML and US company Applied Materials, which supplies equipment to the semiconductor industry. Frencken supplies to both companies.

The current situation is bullish for TSMC as it already has manufacturing capacity in the US, Morningstar said. TSMC shares soared nearly 5 per cent on Thursday.

As for AEM, it is more directly affected as it ships to Intel – and Intel’s main test and assembly is outside of the US, CGSI noted. But it also added that Intel might have room to negotiate as it has invested in the US.

“Eventually, the worst-case scenario over time is likely some demand destruction as customers, suppliers and consumers in the US all bear part of the higher tariff, so further tech innovation demand (resulting in new exciting tech products) is needed,” said CGSI.

“The outlook for tech in H2 2025 remains muted as tariffs continue to render cautious and slow decision-making,” it added.

According to a Straits Times report, the proposed tariff would weigh heavily on companies in Singapore that package semiconductors, and potentially also to components and intermediate products that are part of the chip supply chain.

The semiconductor industry accounts for nearly 6 per cent of Singapore’s gross domestic product, based on Economic Development Board data as at 2025.

Tech stocks in Malaysia already fell on Thursday on the news. It triggered declines in 71 technology counters on Bursa Malaysia.

Last year, Malaysia exported nearly RM120 billion (S$36.4 billion) in electrical and electronics products to the US, accounting for a fifth of its total electrical and electronics exports. Semiconductor exports alone amounted to RM60.6 billion or about 20 per cent of Malaysia’s total chip shipments.