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Singapore Bourse Poised To End Losing Streak

The Singapore stock market has moved lower in back-to-back sessions, dropping more than 50 points or 1.7 percent along the way. The Straits Times Index now rests just above the 3,155-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets is positive after a couple of days of weakness, although sinking crude oil prices may cap the upside. The European and U.S. markets were up and the Asian markets are tipped to follow suit.

The STI finished sharply lower on Wednesday following losses from the financial shares and property stocks, while the industrials were mixed.

For the day, the index skidded 37.11 points or 1.16 percent to finish at 3,155.06 after trading between 3,145.28 and 3,172.87. Volume was 1.81 billion shares worth 1.53 billion Singapore dollars. There were 324 decliners and 186 gainers.

Among the actives, CapitaLand slid 0.80 percent, CapitaLand Integrated Commercial Trust dropped 1.38 percent, City Developments tanked 1.99 percent, Comfort DelGro retreated 1.69 percent, Dairy Farm International weakened 0.47 percent, DBS Group plunged 2.14 percent, Genting Singapore surrendered 1.67 percent, Keppel Corp plummeted 2.57 percent, Mapletree Commercial Trust lost 0.94 percent, Mapletree Logistics Trust and UOL Group both shed 1.01 percent, Oversea-Chinese Banking Corporation declined 1.68 percent, SATS sank 1.44 percent, SembCorp Industries fell 0.91 percent, Singapore Airlines skidded 1.77 percent, Singapore Exchange slipped 0.58 percent, Singapore Press Holdings spiked 2.25 percent, Singapore Technologies Engineering dipped 0.75 percent, SingTel added 0.40 percent, United Overseas Bank tumbled 1.83 percent, Wilmar International was down 0.37 percent, Yangzijiang Shipbuilding advanced 0.74 percent and Ascendas REIT, Thai Beverage and Jardine Strategic Holdings were unchanged.

The lead from Wall Street is solid as the major averages shook off early weakness on Wednesday and finished firmly in the green, snapping a two-day slide.

The Dow spiked 316.01 points or 0.93 percent to finish at 34,137.31, while the NASDAQ jumped 163.95 points or 1.19 percent to end at 13,950.22 and the S&P 500 climbed 38.48 points or 0.93 percent to close at 4,173.42.

Despite concerns about high valuations, traders have largely been reluctant to sell stocks amid worries about missing out on further upside.

Stocks linked to the economy reopening saw significant strength, while shares of Netflix (NFLX) moved sharply lower after the company reported much weaker than expected subscriber growth.

Crude oil futures declined sharply on Wednesday amid rising concerns about the outlook for energy demand due to rising coronavirus infections in India. Data showing an unexpected uptick in U.S. crude inventories also weighed on oil prices. West Texas Intermediate Crude oil futures for June fell $1.32 or 2.1 percent at $61.35 a barrel, the lowest close since April 13.

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