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Singapore Stock Market May Challenge 2,700-Point Level

The Singapore stock market has moved higher in five straight sessions, gathering more than 110 points or 4.4 percent along the way. The Straits Times Index now rests just beneath the 2,690-point plateau and it's expected to add to its winnings again on Tuesday.

The global forecast for the Asian markets is upbeat on continued optimism for economic recovery from the coronavirus pandemic, despite a rebound by the virus. The European and U.S. markets were sharply higher and the Asian bourses also figure to open in the green.

The STI finished sharply higher on Monday following gains from the financial shares, property stocks and industrial issues.

For the day, the index jumped 36.67 points or 1.38 percent to finish at 2,689.61 after trading between 2,653.37 and 2,696.01. Volume was 1.86 billion shares worth 1.17 billion Singapore dollars.

Among the actives, Yangzijiang Shipbuilding surged 3.70 percent, while Thai Beverage soared 3.60 percent, SembCorp Industries spiked 2.75 percent, Comfort DelGro accelerated 2.70 percent, Wilmar International jumped 1.93 percent, DBS Group climbed 1.85 percent, CapitaLand Commercial Trust gathered 1.69 percent, Singapore Press Holdings perked 1.55 percent, United Overseas Bank rallied 1.53 percent, CapitaLand Mall Trust advanced 1.467 percent, Oversea-Chinese Banking Corporation collected 1.41 percent, Keppel Corp added 1.15 percent, Singapore Exchange gained 1.09 percent, Mapletree Logistics Trust rose 1.00 percent, Ascendas REIT increased 0.92 percent, Singapore Airlines advanced 0.77 percent, CapitaLand added 0.66 percent, Genting Singapore gained 0.65 percent, Singapore Technologies Engineering rose 0.59 percent, SingTel was up 0.40 percent and Mapletree Commercial Trust was unchanged.

The lead from Wall Street is broadly positive as stocks opened Monday with a strong move to the upside and remained in the green throughout the session, extending last week's gains.

The Dow jumped 459.67 points or 1.78 percent to finish at 26,2187.03, while the NASDAQ spiked 226.02 points or 2.21 percent to end at 10,433.65 and the S&P 500 climbed 49.71 points or 1.59 percent to close at 3,179.72.

Strength in overseas has carried over to Wall Street, as Chinese shares skyrocketed on the day amid positive commentary on the market from state media. China's Securities Times said fostering a healthy bull market after the pandemic is now more important to the economy than ever.

Traders also remain generally optimistic about the U.S. economic outlook following last Thursday's better than expected jobs data. Then on Monday, the Institute for Supply Management reported a substantial turnaround in U.S. service sector activity in June.

Investors also weighed developments on the coronavirus vaccine front following reports that the U.K. is closing in on a $624 million supply deal with Sanofi and GlaxoSmithKline for 60 million doses of a potential vaccine.

Crude oil futures settled slightly lower Monday as traders weighed energy demand prospects and fears of another lockdown amid a surge in new coronavirus cases across the globe. West Texas Intermediate crude oil futures for August ended down $0.02 at $40.63 a barrel.

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