Singapore Stock Market May Crack Resistance At 2,600 Points

The Singapore stock market has finished higher in two of three trading days since the end of the two-day slide in which it had fallen almost 45 points or 1.8 percent. The Straits Times Index now rests just beneath the 2,590-point plateau and it's tipped to extend its gains on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism for an economic recovery. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The STI finished modestly higher on Tuesday following gains from the financial shares and mixed performances from the property stocks and industrials.

For the day, the index gained 15.81 points or 0.61 percent to finish at the daily low of 2,589.91 after peaking at 2,610.99. Volume was 2.34 billion shares worth 1.6 billion Singapore dollars. There were 236 gainers and 193 decliners.

Among the actives, SembCorp Industries plummeted 3.85 percent, while Singapore Exchange surged 3.47 percent, CapitaLand soared 2.82 percent, Venture Corporation spiked 2.15 percent, Comfort DelGro plunged 2.03 percent, SATS tanked 1.72 percent, Singapore Press Holdings tumbled 1.55 percent, DBS Group jumped 1.36 percent, City Developments climbed 1.32 percent, CapitaLand Commercial Trust skidded 1.17 percent, Oversea-Chinese Banking Corporation advanced 1.01 percent, Singapore Technologies Engineering added 0.92 percent, United Overseas Bank collected 0.75 percent, Thai Beverage dropped 0.74 percent, Genting Singapore sank 0.65 percent, Yangzijiang Shipbuilding gained 0.54 percent, Singapore Airlines lost 0.53 percent, Mapletree Commercial Trust rose 0.52 percent, SingTel increased 0.41 percent, Keppel Corp was up 0.17 percent and Wilmar International, Mapletree Logistics Trust, CapitaLand Mall Trust and Ascendas REIT were unchanged.

The lead from Wall Street is broadly positive as stocks moved notably higher on Tuesday, extending the strong upward move seen in the previous session.

The Dow jumped 217.08 points or 0.85 percent to finish at 25,812.88, while the NASDAQ soared 184.61 points or 1.87 percent to end at 10.058.77 and the S&P 500 advanced 47.05 points or 1.54 percent to close at 3,100.29.

Traders continued to express optimism about the economic outlook despite the continued spike in new coronavirus cases across several states.

Adding to the positive sentiment, the Conference Board reported a bigger than expected improvement in consumer confidence in June. Also, a separate report released by MNI Indicators showed a continued contraction in Chicago-area business activity last month.

Traders also kept an eye on Federal Reserve Chair Jerome Powell's testimony before the House Financial Services Committee regarding the response to the coronavirus pandemic. Powell said output and employment remain far below pre-pandemic levels and cautioned the outlook for the economy is "extraordinarily uncertain."

Crude oil prices drifted lower on Tuesday as worries about the outlook for energy demand persisted due to continued surge in new cases of coronavirus around the world. West Texas Intermediate crude oil futures for August ended down $0.43 or 1.1 percent at $39.27 a barrel.

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