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Rally May Stall For Singapore Stock Market

The Singapore stock market has finished higher in three straight sessions, gathering more than 60 points or 2.4 percent along the way. The Straits Times Index now rests just above the 2,580-point plateau although it may see profit taking on Wednesday.

The global forecast for the Asian markets suggests profit taking after multiple sessions of gain, as well as ongoing concerns over the lingering effects of Covid-19. The European and U.S. markets were down and the Asian bourses are tipped to follow in similar fashion.

The STI finished sharply higher on Tuesday following gains from the financial shares and property stocks.

For the day, the index spiked 42.05 points or 1.66 percent to finish at 2,581.33 after trading between 2,579.61 and 2,596.41. Volume was 1.8 billion shares worth 1.54 billion Singapore dollars.

Among the actives, SATS skyrocketed 5.19 percent, while Genting Singapore surged 4.05 percent, CapitaLand Commercial Trust soared 3.87 percent, Comfort DelGro spiked 3.31 percent, CapitaLand Mall Trust accelerated 3.30 percent, Mapletree Commercial Trust jumped 3.23 percent, DBS Group gathered 2.78 percent, Ascendas REIT perked 2.70 percent, CapitaLand climbed 2.44 percent, Oversea-Chinese Banking Corporation advanced 2.27 percent, Yangzijiang Shipbuilding added 2.16 percent, Singapore Technologies Engineering gained 1.83 percent, United Overseas Bank collected 1.69 percent, SingTel rose 1.12 percent, Mapletree Logistics Trust increased 1.10 percent, Wilmar International was up 1.05 percent, Thai Beverage sank 0.75 percent, Singapore Press Holdings lost 0.68 percent, Singapore Airlines fell 0.54 percent and SembCorp Industries was unchanged.

The lead from Wall Street is negative as stocks turned in a lackluster performance of Tuesday before coming under pressure going into the close - offsetting gains from the previous session.

The Dow shed 390.51 points or 1.59 percent to finish at 24,206.86, while the NASDAQ lost 49.72 points or 0.54 percent to 9.185.10 and the S&P 500 fell 30.97 points or 1.05 percent to 2,922.94.

The late-day weakness on Wall Street came as traders cashed in on the rally seen on Monday, which lifted the Nasdaq and the S&P 500 to their best closing levels in over two months.

Traders have recently expressed considerable optimism about the economy reopening, although lingering concerns about the coronavirus pandemic led to some caution.

Traders were also reacting to comments from Federal Reserve Chair Jerome Powell, who reaffirmed the central bank will provide more support to the economy.

Crude oil prices were higher Tuesday, supported by increased demand and output cuts on the expiration of the front-month contract. West Texas Intermediate Crude oil futures expired at $32.50 a barrel, gaining $0.68 or 2.1 percent. July series WTI contract advanced $0.31 or 1 percent to settle at $31.96 a barrel.

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