Singapore Stock Market May Find Traction On Wednesday

(RTTNews) - The Singapore stock market has finished lower in four straight sessions, slipping more than 40 points or 1.7 percent in that span. The Straits Times Index now sits just beneath the 2,465-point plateau and it may stop the bleeding on Wednesday.

The global forecast for the Asian markets is positive, with bargain hunting expected after days of heavy selling while optimism for additional stimulus added to the positive sentiment. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The STI finished modestly lower on Tuesday following losses from the financial shares and property stocks.

For the day, the index dropped 22.42 points or 0.90 percent to finish at 2,463.29 after trading between 2,455.33 and 2,481.77. Volume was 1.3 billion shares worth 1.31 billion Singapore dollars. There were 236 decliners and 201 gainers.

Among the actives, CapitaLand Commercial Trust plummeted 4.05 percent, while Singapore Press Holdings plunged 3.74 percent, CapitaLand Mall Trust tanked 2.97 percent, SingTel tumbled 2.26 percent, SATS skidded 2.13 percent, City Developments retreated 1.76 percent, Singapore Airlines declined 1.75 percent, Keppel Corp surrendered 1.67 percent, DBS Group sank 1.25 percent, Ascendas REIT dropped 1.23 percent, CapitaLand shed 1.11 percent, Mapletree Commercial Trust lost 1.00 percent, United Overseas Bank and Mapletree Logistics Trust both fell 0.99 percent, Singapore Technologies Engineering slid 0.88 percent, Thai Beverage dipped 0.84 percent, Genting Singapore added 0.74 percent, Oversea-Chinese Banking Corporation gave away 0.71 percent, Wilmar International gained 0.69 percent, Comfort DelGro slipped 0.68 percent, Dairy Farm International rose 0.26 percent and Yangzijiang Shipbuilding, SembCorp Industries and Singapore Exchange were unchanged.

The lead from Wall Street is firm as stocks shook off a sluggish start on Tuesday to finish solidly in the green, halting a three-day slide.

The Dow climbed 140.48 points or 0.52 percent to finish at 27,288.18, while the NASDAQ spiked 184.84 points or 1.71 percent to end at 10,963.64 and the S&P 500 jumped 34.51 points or 1.05 percent to close at 3,315.57.

The strength on Wall Street came after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."

Although worries about rising coronavirus cases persisted and reports of fresh lockdown restrictions in some countries raised concerns about growth, bargain hunting and short-covering after Monday's sharp setback pushed stock prices higher.

In economic news, the National Association of Realtors reported that existing home sales in the U.S. climbed to their highest level in nearly fourteen years in August.

Crude oil futures saw a technical rebound on Tuesday, although it was limited by worries about the outlook for energy demand amidst new coronavirus cases in Europe. West Texas Intermediate Crude oil futures for November ended higher by $0.26 or 0.7 percent at $39.80 a barrel.

Closer to home, Singapore will provide August figures for consumer prices later today; in July, overall inflation was down 0.3 percent on month and 0.4 percent on year, while core CPI also sank an annual 0.4 percent.

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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