Semiconductor, shipbuilding stocks suffer heavy losses in SGX bloodbath (2025)

[SINGAPORE] Chipmaking and shipbuilding shares dived up to 8 per cent in early trade on Friday (Apr 4) following US President Donald Trump’s “Liberation Day” tariffs.

As at 10.52am, the Straits Times Index had tumbled by 105.44 points or 2.7 per cent to 3,836.79 – chalking up its largest single-day drop since March 2020.

Trump announced a 10 per cent baseline tax plus punitive “reciprocal tariffs” on all US imports, with some countries such as South-east Asian nations Vietnam (46 per cent), Thailand (36 per cent) and Cambodia (49 per cent) facing crippling taxes.

Here are how shares in various sectors reacted on Friday morning:

1. Semiconductors

While semiconductors have been exempted from tariffs for now, analysts from Nomura research noted in an Apr 3 report that the space is hardly “immune”.

This is owing to how the US is likely to push for another round of tariffs on specific products, which could include semiconductors.

Semiconductor manufacturer UMS dipped 2.8 per cent or S$0.03 to S$1.03. AEM also fell 3.9 per cent or S$0.05 to S$1.23, as at 10.38am.

As at 10.40am, Grand Venture Technology had tumbled 4.1 per cent or S$0.03 to S$0.695.

2. Banks

The trio of three Singapore banks were a sea of red from early trade. As at 10.43am, DBS was down 4.8 per cent or S$2.17 at S$43.35, UOB by 3.4 per cent or S$1.25 at S$35.60, and OCBC by 2.6 per cent or S$0.44 at S$16.65.

3. Shipbuilding

Shipbuilders, who are highly exposed to global trade, generally slumped.

Global offshore marine group Nam Cheong had plunged by 9.2 per cent or S$0.055 to S$0.54, as at 11.10am.

As at 11.12am, Seatrium had fallen by 3.5 per cent or $0.07 to S$1.93, Yangzijiang Shipbuilding by 4.9 per cent or S$0.11 to S$2.15, and Samudera Shipping by 4.7 per cent or S$0.04 to S$0.81.

Keppel was down 3 per cent or S$0.21 at S$6.65 as at 11.48am.

4. Glovemakers

Glovemakers are expected to be a potential winner in the region, as the reciprocal tariff imposition by the US is “neutral to positive” for Malaysian glovemakers, writes Raymond Choo, analyst from Kenanga Investment Bank.

“The overall Malaysian glove makers are still net positive. Factoring in the over 100 per cent tariffs imposed on China medical gloves from 2025 to 2026, the pricing gap between Malaysia and China producers for US exports is still wide,” he wrote in an Apr 3 report.

All three Malaysian glovemakers listed in Singapore were mixed in morning trade. Medical product manufacturer UG Healthcare was up 3.5 per cent or S$0.004 at S$0.118, as at 11.15am.

On the other hand, as at 11.18am, Top Glove was down 3.9 per cent or S$0.01 at S$0.245. Riverstone Holdings was also trading 1.6 per cent or S$0.015 at S$0.91, as at 11.21am.

Still, in Malaysia, Choo has kept an “overweight” rating on the sector. “The net effect is positive for Malaysia as any volume loss in non-US markets can be offset by higher demand from the US, considering that the US historically accounts for 35 to 40 per cent of Malaysia’s total glove volume,” he said.