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Rebound Anticipated For Singapore Stock Market

The Singapore stock market headed south again on Wednesday, one day after it had ended the two-day slide in which it had fallen more than 35 points or 1.4 percent. The Straits Times Index now rests just beneath the 2,575-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat on solid earnings news and economic data. The European markets were mixed and the U.S. bourses moved higher and the Asian markets are expected to follow the latter lead.

The STI finished modestly lower on Wednesday following losses from the financial shares and property stocks.

For the day, the index shed 9.52 points or 0.37 percent to finish at 2,573.45 after trading between 2,564.46 and 2,586.16. Volume was 1.33 billion shares worth 1.29 billion Singapore dollars. There were 215 decliners and 185 gainers.

Among the actives, Singapore Press Holdings plummeted 5.17 percent, while Venture Corporation surged 3.58 percent, Wilmar International soared 3.37 percent, CapitaLand Mall Trust plunged 2.96 percent, CapitaLand Commercial Trust tanked 2.89 percent, Yangzijiang Shipbuilding spiked 1.64 percent, Mapletree Logistics Trust accelerated 1.42 percent, Genting Singapore and Hongkong Land both tumbled 1.33 percent, Singapore Airlines skidded 1.12 percent, Mapletree Commercial Trust retreated 1.04 percent, Singapore Exchange declined -.96 percent, Ascendas REIT jumped 0.85 percent, Thai Beverage surrendered 0.79 percent, Oversea-Chinese Banking Corporation sank 0.78 percent, Comfort DelGro dropped 0.74 percent, SATS and CapitaLand both shed 0.72 percent, DBS Group lost 0.49 percent, City Developments advanced 0.49 percent, United Overseas Bank fell 0.45 percent, SingTel slid 0.40 percent, Keppel Corp eased 0.36 percent, Dairy Farm International rose 0.24 percent and Singapore Technologies Engineering and SembCorp Industries were unchanged.

The lead from Wall Street is positive as stocks opened higher on Wednesday and picked up steam as the day progressed.

The Dow added 160.29 points or 0.61 percent to finish at 26,539.57, while the NASDAQ spiked 140.85 points or 1.35 percent to end at 10,542.94 and the S&P 500 rose 40.00 points or 1.24 percent to close at 3,258.44.

Early buying interest was partly generated by the latest batch of earnings news, with a number of big-name companies reporting better than expected quarterly results including Advanced Micro Devices (AMD) and C.H. Robinson (CHRW).

The strength on Wall Street also reflected a report from the National Association of Realtors showing another significant increase in pending home sales in June.

Stocks saw continued strength after the Federal Reserve announced its widely expected decision to leave interest rates at near-zero levels amid the economic hardship imposed by the coronavirus pandemic.

Crude oil prices moved higher on Wednesday after data showed a larger than expected decline in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September ended up $0.23 or 0.6 percent at $41.27 a barrel.

Closer to home, Singapore will see Q2 results for its business confidence index later today; in the previous three months, the index score was -56.0.

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