Singapore Bourse May Test Support At 2,500 Points

(RTTNews) - The Singapore stock market has finished lower in back-to-back trading days, sliding almost 45 points or 1.8 percent along the way. The Straits Times Index now sits just beneath the 2,525-point plateau and it's looking at another soft start again on Friday.

The global forecast for the Asian markets is negative on rising coronavirus cases and falling hopes for stimulus. The European and U.S. markets were down and the Asian bourses are predicted to follow suit.

The STI finished sharply lower on Thursday following losses from the financials and plantations, while the industrials and properties were mixed.

For the day, the index dropped 31.97 points or 1.25 percent to finish at 2,523.62 after trading between 2,518.14 and 2,548.62. Volume was 1.27 billion shares worth 1.28 billion Singapore dollars. There were 271 decliners and 167 gainers.

Among the actives, Wilmar International plummeted 6.44 percent, while SembCorp Industries surged 4.41 percent, Genting Singapore plunged 2.90 percent, Venture Corporation tanked 2.80 percent, City Developments tumbled 2.54 percent, Singapore Exchange skidded 2.15 percent, Yangzijiang Shipbuilding retreated 2.06 percent, Comfort DelGro declined 2.03 percent, SingTel surrendered 1.81 percent, Thai Beverage sank 1.72 percent, CapitaLand dropped 1.42 percent, Keppel Corp jumped 1.34 percent, Oversea-Chinese Banking Corporation shed 1.26 percent, United Overseas Bank lost 1.22 percent, DBS Group fell 1.17 percent, Singapore Press Holdings advanced 1.00 percent, CapitaLand Commercial Trust slid 0.61 percent, Dairy Farm International dipped 0.52 percent, CapitaLand Mall Trust and Mapletree Commercial Trust both added 0.52 percent, Mapletree Logistics Trust slipped 0.48 percent, Singapore Technologies Engineering eased 0.28 percent, Hongkong Land Holdings rose 0.26 percent and Ascendas REIT, SATS and Singapore Airlines were unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Friday, then cut into the losses as the session progressed but still finished in the red for the second straight day.

The Dow fell 19.80 points or 0.07 percent to finish at 28,494.20, while the NASDAQ lost 54.86 points or 0.47 percent to end at 11,713.87 and the S&P 500 eased 5.33 points or 0.15 percent to close at 3,483.34.

The initial sell-off on Wall Street came amid uncertainty about a new stimulus bill after Treasury Secretary Steven Mnuchin suggested on Wednesday that a new relief package is not likely to pass before next month's elections.

Early selling pressure was also generated by a Labor Department report showing an unexpected increase in first-time claims for U.S. jobless benefits last week.

However, stocks rebounded well off their lows after Mnuchin told reporters that he and President Donald Trump are committed to getting a stimulus deal done.

Crude oil prices rebounded from early weakness to pare most of their losses on Thursday after data showed a larger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for November ended down $0.08 or 0.2 percent at $40.96 a barrel.

Closer to home, Singapore will release September figures for non-oil exports and balance of trade later this morning. In August, non-oil exports were up 10.5 percent on month and 7.7 percent on year, leading to a trade surplus of SGD5.8 billion.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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