ComfortDelGro and SATS slipped in Wednesday morning trading as investors bet that haze would curb discretionary trips to malls and airport dining, leaving the Straits Times Index hovering near 5,420 after the Monetary Authority of Singapore left policy settings unchanged and third-quarter growth surprised to the upside.
Index context
The benchmark closed at 5,423.33 on Tuesday, down 0.13 per cent, with Jardine Matheson among gainers and Keppel DC REIT weaker. Investing.com data show the index has traded in a narrow band above 5,400 since the start of October, supported by bank earnings and artificial intelligence supply-chain demand even as air quality deteriorated.
MAS said on 14 October that it expects the economy to keep expanding, citing strong orders for AI-related products. UOB, DBS, OCBC and Maybank lifted 2026 growth forecasts after advance Ministry of Trade and Industry estimates put third-quarter expansion at 5.4 per cent year on year, above the 5.1 per cent Bloomberg consensus.
Transport names under haze pressure
ComfortDelGro, which operates buses, taxis and rail assets, fell in early trade as parents kept children indoors and Sport Singapore closed western outdoor facilities. Fewer discretionary outings mean softer taxi demand during traditionally busy school-holiday weeks, even though essential commutes continue.
SATS, the ground-handling and food services group, also weakened as travellers postpone leisure flights within the haze plume affecting Kalimantan and Sumatra. Singapore Airlines has not cancelled short-haul banks en masse, but cabin crew memos show tighter ground procedures that can lengthen turn times slightly.
What could reverse the drift
Analysts at a local brokerage said banks may still support the index if net interest margins hold after the MAS pause. Semiconductor-related heavyweights remain sensitive to global tech orders, offsetting transport weakness if chip packaging lines stay busy in Tuas.
NEA forecasts unhealthy to very unhealthy air for 15 October. Until PSI eases, Priya Nair’s stocks desk will watch whether investors treat haze as a one-week drag or a reason to trim consumer exposure into year-end earnings.
Flows and dividends
Trading volume on Tuesday reached 980.7 million securities worth S$1.9 billion, with losers edging gainers 284 to 238. REITs tied to suburban malls could see softer tenant sales if families postpone weekend outings, while industrial REITs with logistics exposure may prove more resilient. Ex-dividend dates across the STI this month add another layer for funds tracking the benchmark mechanically.
Foreign investors have not fled Singapore equities during prior haze seasons; the bigger swing factor remains global tech demand and MAS’s next policy meeting. For now, transport dips look like a weather trade unless PSI readings persist into November fire seasons.