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Oversold Singapore Stock Market Expected To Open Lower

The Singapore stock market moved lower again on Monday, one session after it had ended the seven-day losing streak in which it had plummeted more than 21 percent. The Straits Times Index now rests just above the 2,230-point plateau and it's looking at another soft lead for Tuesday's trade.

The global forecast for the Asian markets remains negative on concerns about the effect of the coronavirus on the global economy. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The STI finished with major losses on Monday with damage across the board - especially from the properties and trusts.

For the day, the index plunged 177.26 points or 7.35 percent to finish at 2,233.48 after trading between 2,208.42 and 2,274.38. Volume was 1.43 billion shares worth 1.81 billion Singapore dollars. There were 421 decliners and 95 gainers.

Among the actives, SATS cratered 12.84 percent, while Singapore Airlines plummeted 10.96 percent, Mapletree Logistics Trust plunged 10.14 percent, Singapore Technologies Engineering tumbled 9.68 percent, CapitaLand Mall Trust skidded 9.55 percent, Genting Singapore sank 9.48 percent, Singapore Press Holdings dropped 8.84 percent, Ascendas REIT shed 8.76 percent, Mapletree Commercial Trust lost 8.47 percent, CapitaLand fell 8.21 percent, CapitaLand Commercial Trust slid 7.38 percent, United Overseas Bank dipped 7.33 percent, DBS Group slipped 7.05 percent, Oversea-Chinese Banking Corporation retreated 6.58 percent, Thai Beverage declined 6.54 percent, Singapore Exchange lost 6.34 percent, Wilmar International fell 6.15 percent, Yangzijiang Shipbuilding sank 5.99 percent, SembCorp Industries shed 5.59 percent, SingTel fell 5.39 percent, Comfort DelGro was down 4.79 percent and Keppel Corp eased 3.65 percent.

The lead from Wall Street is soft with a dose of volatility as stocks saw wild swings again on Monday. The NASDAQ peeked into positive territory a couple of times, but all three major averages finished in the red.

The Dow sank 754.38 points or 3.93 percent to finish at 18,419.60, while the NASDAQ lost 56.67 points or 0.82 percent to 6,822.85 and the S&P 500 fell 86.44 points or 3.75 percent to 2,21848.

After opening sharply lower, the markets got a lift when the Federal Reserve announced extensive new measures to support the economy - saying that it is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time.

The measures include an unlimited expansion of the Fed's asset purchases, with the central bank saying it will purchase Treasuries and mortgage-backed securities in unspecified large amounts.

But the markets resumed their downward march in afternoon trade as the virus continues to spread.

Crude oil prices climbed higher on Monday, reacting positively to the Federal Reserve's announcement of extensive new measures to support the economy. West Texas Intermediate Crude oil futures for May ended up $0.73 or 3.2 percent at $23.36 a barrel.

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