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Continued Consolidation Expected For Singapore Bourse

The Singapore stock market has moved lower in three straight sessions, sinking almost 20 points or 0.8 percent along the way. The Straits Times Index now sits just above the 2,490-point plateau and it may extend its losses again on Friday.

The global forecast for the Asian markets is weak as optimism waned in the United States over a coronavirus relief package. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The STI finished slightly lower on Thursday as losses from the plantations and telecoms were offset by gains from the financials and properties.

For the day, the index lost 7.24 points or 0.29 percent to finish at 2,492.09 after trading between 2,477.59 and 2,510.71. Volume was 1.58 billion shares worth 1.16 billion Singapore dollars.

Among the actives, Wilmar International plummeted 3.70 percent, while Comfort DelGro plunged 1.97 percent, Singapore Press Holdings surged 1.94 percent, SembCorp Industries soared 1.71 percent, SATS tanked 1.69 percent, CapitaLand Mall Trust spiked 1.54 percent, Genting Singapore tumbled 1.45 percent, Singapore Airlines skidded 1.12 percent, Ascendas REIT retreated 0.91 percent, Singapore Technologies Engineering declined 0.87 percent, CapitaLand Commercial Trust and UOL Group both jumped 0.60 percent, United Overseas Bank climbed 0.57 percent, Yangzijiang Shipbuilding gathered 0.53 percent, Mapletree Logistics Trust sank 0.49 percent, SingTel perked 0.45 percent, City Developments advanced 0.38 percent, CapitaLand added 0.37 percent, Keppel Corp lost 0.24 percent, Oversea-Chinese Banking Corporation collected 0.12 percent, DBS Group rose 0.10 percent and Dairy Farm International, Mapletree Commercial Trust and Thai Beverage were unchanged.

The lead from Wall Street is negative as stocks were unable to hold on to early gains Thursday, reversing course in the late morning before finishing firmly in the red.

The Dow plunged 405.89 points or 1.45 percent to finish at 27,534.58, while the NASDAQ tumbled 221.97 points or 1.99 percent to end at 10,919.59 and the S&P 500 dropped 59.77 points or 1.76 percent to close at 3,339.19.

Strength among tech stocks contributed to the early advance on Wall Street, but they also helped to lead the subsequent pullback by the markets.

Adding to the negative sentiment, Senate Republicans failed to advance a new coronavirus stimulus bill. Facing unanimous opposition from Democrats, the bill couldn't clear a key procedural hurdle in the latest sign of the difficulty lawmakers have had in passing a new relief package.

In economic news, the Labor Department said initial jobless claims were roughly unchanged last week, defying expectations for a notable decline. Also, the Labor Department said producer prices increased slightly more than expected last month.

Crude oil prices drifted lower Thursday after data showed an increase in U.S. crude inventories last week, while easing of output curbs by OPEC+ also contributed to oil's weakness. West Texas Intermediate Crude oil futures for October ended down $0.75 or 2 percent at $37.30 a barrel.

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