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Additional Consolidation Called For Singapore Shares

Ahead of the long weekend for Hari Raya Haji, the Singapore stock market had turned lower again - one session after snapping the five-day slide in which it had fallen almost 185 points or 5.6 percent. The Straits Times Index now rests just beneath the 3,170-point plateau and it may take further damage on Tuesday.

The global forecast for the Asian markets is broadly negative on continuing concerns over the trade dispute between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

The STI finished modestly lower on Thursday following losses from the industrials and mixed performances from the financials and properties.

For the day, the index sank 15.75 points or 0.49 percent to end at 3,168.94 after trading between 3,159.45 and 3,184.47. Volume was 970 million shares worth 1.14 billion Singapore dollars. There were 204 decliners and 194 gainers.

Among the actives, Yangzijiang Shipbuilding cratered 20.00 percent, while Singapore Technologies Engineering surged 2.43 percent, CapitaLand Mall Trust soared 2.35 percent, Hutchison Port Holdings plummeted 1.55 percent, SembCorp Industries plunged 1.32 percent, Genting Singapore tumbled 1.14 percent, Singapore Exchange climbed 1.12 percent, Wilmar International advanced 1.01 percent, SingTel fell 0.91 percent, Keppel Corp skidded 0.83 percent, CapitaLand dropped 0.58 percent, DBS Group shed 0.56 percent, CapitaLand Commercial Trust added 0.49 percent, Singapore Press Holdings gained 0.48 percent, United Overseas Bank collected 0.46 percent, Ascendas REIT rose 0.33 percent, Oversea-Chinese Banking Corporation was up 0.18 percent and Thai Beverage, Golden Agri-Resources and Comfort DelGro were unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Monday and continued to head south throughout the day, extending last week's losses.

The Dow shed 391.00 points or 1.49 percent to 25,896.44, while the NASDAQ lost 95.73 points or 1.20 percent to 7,863.41 and the S&P 500 fell 35.96 points or 1.23 percent to 2,882.69.

The sell-off on Wall Street came amid worries about a prolonged trade war between the U.S. and China after President Donald Trump recently indicated he feels no sense of urgency to resolve the dispute.

Concerns about the impact of increasingly violent protests in Hong Kong also weighed on stocks, with the Hong Kong International Airport canceling all departing flights due to the disruption caused by protesters.

The geopolitical concerns increased the appeal of safe haven assets like bonds, resulting in a steep drop in U.S. treasury yields. The yield on the benchmark ten-year note tumbled to its lowest closing level in almost three years.

Crude oil prices were higher Monday on speculation production cuts by OPEC and fewer shipments from Saudi Arabia will outweigh concerns about near term energy demand outlook. West Texas Intermediate crude oil futures for September ended up $0.43 or 0.8 percent at $54.93 a barrel.

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