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Rebound Anticipated For Singapore Stock Market

The Singapore stock market on Wednesday halted the three-day winning streak in which it had gathered more than 60 points or 2.4 percent. The Straits Times Index now rests just above the 2,560-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is broadly positive on optimism for economic recovery in the wake of the Covid-19 shutdown. The European and U.S. markets were sharply higher and the Asian markets are tipped to open in similar fashion.

The STI finished modestly lower on Wednesday following losses from the financial shares and a mixed picture from the property sector.

For the day, the index sank 19.39 points or 0.75 percent to finish at 2,561.94 after trading between 2,555.50 and 2,587.16. Volume was 1.48 billion shares worth 1.16 billion Singapore dollars.

Among the actives, Singapore Airlines plummeted 3.51 percent, while Singapore Press Holdings surged 2.04 percent, Ascendas REIT plunged 1.97 percent, CapitaLand Commercial Trust soared 1.86 percent, SATS tanked 1.76 percent, CapitaLand Mall Trust spiked 1.60 percent, CapitaLand tumbled 1.36 percent, SingTel skidded 1.11 percent, Mapletree Commercial Trust accelerated 1.04 percent, Singapore Technologies Engineering retreated 0.93 percent, Oversea-Chinese Banking Corporation declined 0.89 percent, Keppel Corp surrendered 0.82 percent, Thai Beverage dropped 0.76 percent, Genting Singapore sank 0.65 percent, Comfort DelGro shed 0.64 percent, DBS Group lost 0.56 percent, Mapletree Logistics Trust fell 0.55 percent, Singapore Exchange slid 0.50 percent, United Overseas Bank dipped 0.35 percent, Wilmar International added 0.26 percent and Yangzijiang Shipbuilding and SembCorp Industries were unchanged.

The lead from Wall Street is upbeat as stocks showed a strong move to the upside on Wednesday, erasing the losses posted in the previous session.

The Dow climbed 369.04 points or 1.52 percent to finish at 24,575.90, while the NASDAQ surged 190.67 points or 2.08 percent to 9,375.78 and the S&P 500 jumped 48.67 points or 1.67 percent to end at 2,971.61.

The rally on Wall Street reflected optimism for an economic recovery as states reopen following the coronavirus-induced lockdowns. Early indications suggest the states that have reopened have not seen a spike in coronavirus cases, which has led to hopes the economy may rebound more quickly than expected.

Positive sentiment was also generated by earnings news from home improvement retailer Lowe's (LOW), which reported Q1 results that exceeded estimates on both the top and bottom lines.

Also, the minutes of the Federal Reserve's latest monetary policy meeting highlighted concerns about the uncertainty and risks to economic activity created by the coronavirus pandemic.

Crude oil prices climbed to a 10-week high on Wednesday after data showed a drop in crude stockpiles, and amid optimism about a pickup in energy demand. West Texas Intermediate Crude oil futures for July ended up $1.53, or 4.8 percent at $33.49 a barrel, the highest since March 10.

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