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Additional Strength Tipped For Singapore Stocks

The Singapore stock market on Wednesday snapped the five-day slide in which it had surrendered almost 140 points or 4.3 percent. The Straits Times Index now rests just above the 3,315-point plateau and it may add to its winnings on Thursday.

The global forecast for the oversold Asian markets is cautiously optimistic, with bargain hunting expected amid a bump in crude oil prices. The European and U.S. markets were mixed to higher, and the Asian bourses figure to follow suit.

The STI finished modestly higher on Wednesday following gains from the industrials and properties, while the financials and plantations were mixed.

For the day, the index added 14.55 points or 0.44 percent to finish at 3,315.90 after trading between 3,297.67 and 3,333.93. Volume was 1.9 billion shares worth 1.18 billion Singapore dollars. There were 254 gainers and 154 decliners.

Among the actives, Yangzijiang Shipbuilding surged 2.17 percent, while SembCorp Industries soared 1.82 percent, Hutchison Port Holdings spiked 1.72 percent, Wilmar International plunged 1.58 percent, Golden Agri-Resources jumped 1.54 percent, CapitaLand Mall Trust climbed 1.49 percent, Comfort DelGro advanced 1.30 percent, Ascendas REIT gathered 1.16 percent, Keppel Corp perked 0.99 percent, Genting Singapore added 0.82 percent, Thai Beverage gained 0.63 percent, CapitaLand Commercial Trust was up 0.61 percent, Oversea-Chinese Banking Corporation collected 0.51 percent, United Overseas Bank rose 0.45 percent, DBS Group lost 0.33 percent and SingTel fell 0.31 percent.

The lead from Wall Street calls for mild support. After an initial move to the upside, stocks turned lackluster on Wednesday - eventually ending the session mixed.

The Dow fell 42.41 points or 0.17 percent to 24,657.80, while the NASDAQ added 55.93 points or 0.72 percent to 7,781.51 and the S&P 500 gained 4.73 points or 0.17 percent to 2,767.32.

The advance by the NASDAQ reflected strength among media stocks after Disney (DIS) raised its offer for most of Twenty-First Century Fox's (FOXA) media assets - exceeding the offer made by rival Comcast (CMCSA).

Traders largely shrugged off concerns about a trade war been the U.S. and China that contributed to weakness on Tuesday.

In economic news, the National Association of Realtors reported an unexpected decrease in existing home sales in May.

Crude oil futures rebounded Wednesday after the latest U.S. inventories report showed a bigger drop than expected. July WTI oil gained $1.15 or 1.8 percent to end at $66.22/bbl on expiration day. August WTI oil was up 81 cents or nearly 1.3 percent to settle at $65.71/bbl.

by RTTNews Staff Writer

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