Singapore Shares Inherit Positive Lead For Friday's Trade

The Singapore stock market has moved lower in consecutive trading days, falling almost 45 points or 1.8 percent along the way. The Straits Times Index now rests just above the 2,590-point plateau although it's expected to find traction on Friday.

The global forecast for the Asian markets is positive, with financials expected to lead the way on eased investment regulations. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The STI finished sharply lower on Thursday following losses from the financials, properties and industrials.

For the day, the index skidded 38.47 points or 1.46 percent to finish at 2,590.15 after trading between 2,574.85 and 2,605.33.

Among the actives, Ascendas REIT plummeted 2.81 percent, while Mapletree Commercial Trust plunged 2.53 percent, City Developments tanked 2.44 percent, CapitaLand Commercial Trust tumbled 2.26 percent, Thai Beverage skidded 2.14 percent, SembCorp Industries retreated 2.11 percent, Singapore Technologies Engineering declined 2.08 percent, CapitaLand Mall Trust and SingTel both surrendered 1.98 percent, DBS Group dropped 1.94 percent, United Overseas Bank sank 1.75 percent, SATS shed 1.62 percent, Singapore Airlines lost 1.54 percent, CapitaLand fell 1.38 percent, Genting Singapore slid 1.31 percent, Comfort DelGro dipped 1.29 percent, Oversea-Chinese Banking Corporation slipped 1.11 percent, Mapletree Logistics Trust was down 1.03 percent, Singapore Press Holdings lost 0.75 percent, Singapore Exchange fell 0.74 percent, Yangzijiang Shipbuilding slid 0.53 percent, Wilmar International dipped 0.24 percent and Keppel Corp eased 0.17 percent.

The lead from Wall Street is upbeat as stocks shook off early weakness on Thursday before moving sharply higher in the final hour of trade.

The Dow spiked 299.66 points or 1.18 percent to finish at 25,745.60, while the NASDAQ jumped 107.84 points or 1.09 percent to end at 10.017.00 and the S&P 500 climbed 33.43 points or 1.10 percent to close at 3,083.76.

The late rally on Wall Street was fueled by financial stocks following news that regulators plan to ease banking regulations, including allowing banks to more easily make investments in riskier funds such as venture capital funds.

The choppy trading seen for most of the session came as investors weighed recent optimism about an economic recovery against spiking coronavirus cases in a number of states. Traders may be worried about the possibility of states re-imposing restrictions on businesses.

In economic news, the Labor Department reported a much smaller than expected drop in initial jobless claims last week, while the Commerce Department noted a substantial rebound in durable goods orders last month.

Crude oil prices were higher Thursday, recovering from losses in the previous two sessions despite continued concerns about energy demand outlook following a surge in new coronavirus cases. West Texas Intermediate crude oil futures for August ended up $0.71 or 1.9 percent at $38.72 a barrel.

Closer to homer, Singapore will provide May numbers for industrial production later today, with forecasts suggesting a decline of 6.0 percent on month and a gain of 6.6 percent on year. That follows the 3.6 percent monthly increase and the 13.0 percent annual spike in April.

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