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Rally May Stall For Singapore Stock Market

The Singapore stock market has finished higher in back-to-back trading days, gathering almost 15 points or 0.5 percent along the way. The Straits Times Index remains just above the 3,220-point plateau although it may run out of steam on Monday.

The global forecast for the Asian markets is slightly negative, although technology stocks are likely to weigh. The European and U.S. market were down and the Asian bourses are predicted to follow suit.

The STI finished barely higher on Friday as gains from the financial shares were capped by weakness from the plantations and properties.

For the day, the index added 1.97 points or 0.06 percent to finish at 3,222.63 after trading between 3,209.93 and 3,223.64. Volume was 773.11 million shares worth 893.30 million Singapore dollars. There were 208 decliners and 170 gainers.

Among the actives, Hutchison Port Holdings plummeted 2.17 percent, while Golden Agri-Resources plunged 1.82 percent, United Overseas Bank soared 0.97 percent, CapitaLand Commercial Trust tumbled 0.96 percent, Hongkong Land jumped 0.91 percent, SingTel skidded 0.60 percent, Genting Singapore climbed 0.57 percent, Singapore Exchange and DBS Group both collected 0.53 percent, SembCorp Industries sank 0.42 percent, Wilmar International fell 0.29 percent, Oversea-Chinese Banking Corporation rose 0.09 percent and CapitaLand, Comfort DelGro, Thai Beverage, Ascendas REIT, CapitaLand Mall Trust, Keppel Corp and Yangzijiang Shipbuilding all were unchanged.

The lead from Wall Street is soft as stocks opened lower on Friday, staged a mild recovery in afternoon trade but still finished in the red.

The Dow shed 17.19 points or 0.07 percent, while the NASDAQ lost 40.47 points or 0.562 percent to 7,796.66 and the S&P fell 4.66 points or 0.16 percent to 2,886.98. For the week, the Dow added 0.4 percent, the NASDAQ rose 0.7 percent and the S&P advanced 0.5 percent.

Tech stocks came under pressure after Broadcom (AVGO) reported better than expected fiscal second quarter earnings but lowered its full-year revenue guidance due to ongoing geopolitical uncertainties.

In economic news, the Commerce noted a solid gain in retail sales in May and a strong upward revision in April. Also, the Federal Reserve noted a bigger than expected increase in industrial production in May, although the University of Michigan said its reading on consumer sentiment dropped in June.

Crude oil prices moved up Friday amid rising geopolitical tensions following the recent attacks on two oil tankers in the Gulf of Oman. West Texas Intermediate crude oil futures for July ended up $0.23 or 0.4 percent at $52.51 a barrel. For the week, WTA crude oil futures shed 2.7 percent.

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