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Losses May Accelerate For Singapore Stock Market

The Singapore stock market headed south again on Wednesday, one session after it had snapped the three-day losing streak in which it had lost almost 40 points or 1.5 percent. The Straits Times Index now rests just beneath the 2,630-point plateau and it figures to open under pressure again on Thursday.

The global forecast for the Asian markets is broadly negative on renewed fears regarding the Covid-19 virus. The European and U.S. markets were sharply lower and the Asian markets are tipped to follow suit.

The STI finished slightly lower on Wednesday following losses from the financial shares, property stocks and industrial issues.

For the day, the index dipped 6.30 points or 0.24 percent to finish at 2,628.62 after trading between 2,615.72 and 2,647.49.

Among the actives, Comfort DelGro plummeted 2.52 percent, while Singapore Press Holdings plunged 2.21 percent, Wilmar International tanked 2.15 percent, Mapletree Logistics Trust surrendered 2.01 percent, Singapore Airlines tumbled 1.27 percent, Singapore Exchange soared 1.25 percent, Yangzijiang Shipbuilding and SembCorp Industries both skidded 1.04 percent, Mapletree Commercial Trust retreated 1.00 percent, SATS and Hongkong Land both declined 0.96 percent, Oversea-Chinese Banking Corporation dropped 0.88 percent, CapitaLand sank 0.68 percent, Genting Singapore advanced 0.66 percent, Singapore Technologies Engineering shed 0.59 percent, CapitaLand Mall Trust lost 0.49 percent, SingTel gained 0.40 percent, Ascendas REIT fell 0.31 percent, United Overseas Bank slid 0.15 percent, DBS Group eased 0.14 percent and Keppel Corporation, Thai Beverage and CapitaLand Commercial Trust were unchanged.

The lead from Wall Street is soft as stocks opened firmly in the red on Wednesday and remained there throughout the session.

The Dow plummeted 710.16 points or 2.72 percent to finish at 25,445.94, while the NASDAQ plunged 222.20 points or 2.19 percent to end at 9,909.17 and the S&P 500 tumbled 80.96 points or 2.59 percent to close at 3,050.33.

The sell-off on Wall Street came as traders could no longer ignore the spiking number of new Covid-19 cases in several U.S. states after Florida and California both reported their single biggest daily increases in new cases.

New York Governor Andrew Cuomo also announced that out-of-state visitors coming to New York, New Jersey and Connecticut from regions with high Covid-19 rates will be required to quarantine for 14 days.

Recent studies suggest the nation's seven-day average of daily new Covid-19 cases spiked more than 30 percent compared with a week ago.

Crude oil prices declined sharply on Wednesday as worries about the outlook for energy demand rose after data showed a surge in coronavirus cases. West Texas Intermediate Crude oil futures for August ended down $2.36 or 5.8 percent at $38.01 a barrel.

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