Why is the STI index falling today?

The STI is facing downward pressure due to a repricing of global policy risk and uncertainty regarding upcoming trade policies, affecting sentiment in banks and REITs.

What are the key support levels for the STI?

Immediate support is found at the day low of 4,808.93, with a critical psychological pivot located at 4,820.

How do trade policy headlines affect Singapore equities?

As a major global trade hub, Singaporean equities are highly sensitive to tariff rhetoric and shifts in the geopolitical risk premium, which impacts regional trade flows.

STI Index Analysis: Singapore Market Policy Risk | FXPremiere

The Straits Times Index (STI) faced a cautious sell-off as global policy uncertainty and trade-policy tail risks forced a repricing of risk premia across Asian markets.

The Straits Times Index (STI) navigated a volatile session on January 21, 2026, as market participants aggressively repriced policy tail risks, pushing the Singapore benchmark toward key psychological support levels amidst a broader global risk-off regime.

Market Overview: STI Navigates Policy Uncertainty

During the transition from the Asia close to the London open, the STI showed signs of structural fatigue, opening at 4,817.02. The index fluctuated within a range of 4,808.93–4,842.45, eventually settling around 4,828.00, a modest decline of 0.14%. This price action reflects a market less concerned with micro-fudamental data and more focused on the overarching macro regime characterized by trade-policy volatility and geopolitical tension.

Session Summary

Asia Close to London Open: A cautious handover saw risk premiums remain elevated, with liquidity providers demanding higher compensation for holding duration-sensitive assets.
London Morning: European markets validated the risk-off sentiment, fading bounces in cyclical sectors and high-beta components.
NY Morning: US liquidity confirmed the prevailing regime, with extension vs. fade strategies being gated by shifts in long-end yields.

Index Read-Through: Banks and REITs Under Pressure

The STI sell-off mapped most cleanly to Singapore’s banking sector and Real Estate Investment Trusts (REITs). These sectors remain highly sensitive to sticky long-end yields and regional trade flows. In the current headline-driven environment, investors are prioritizing level discipline over conviction chasing, treating indices as expressions of the discount rate rather than fundamental baskets.

Technical Levels and Market Structure

The technical landscape for the STI is currently defined by a battle for control around the 4,820-4,830 handle:

Support: 4,808.93 (interday low), followed by the critical 4,820 psychological pivot.
Resistance: 4,842.45 (interday high) and the 4,830 handle.
Regime Marker: A sustained trade above 4,830 suggests potential volatility compression, while a break below 4,820 keeps left-tail risks in play.

Scenario Analysis

Base Case (65% Probability)

The index remains within a range characterized by elevated uncertainty. Without further geopolitical escalation, the STI likely sees mean reversion around the current value area, with rallies fading into resistance as headline sensitivity remains high.

Risk-Off Continuation (17% Probability)

A renewal of trade-war rhetoric or a spike in global yields could trigger a continuation through the day's lows of 4,808.93, potentially testing 4,788.93 as systematic selling takes hold.