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Singapore Stock Market Tipped To Remain Rangebound

The Singapore stock market has alternated between positive and negative finishes through the last five trading days since the end of the six-day winning streak in which it had jumped almost 75 points or 2.4 percent. The Straits Times Index now rests just above the 3,150-point plateau although it's expected to rebound again on Monday.

The global forecast for the Asian markets is positive in response to U.S. employment data and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The STI finished modestly lower on Friday following losses from the financial shares, property stocks and industrial issues.

For the day, the index lost 13.96 points or 0.44 percent to finish at 3,151.04 after trading between 3,145.79 and 3,171.45. Volume was 2.34 billion shares worth 1.07 billion Singapore dollars. There were 288 decliners and 238 gainers.

Among the actives, Ascendas REIT sank 0.68 percent, while CapitaLand shed 0.54 percent, CapitaLand Integrated Commercial Trust and Oversea-Chinese Banking Corporation both fell 0.48 percent, City Developments plummeted 1.40 percent, Dairy Farm International tanked 1.12 percent, DBS Group slid 0.37 percent, Genting Singapore added 0.57 percent, Keppel Corp retreated 0.93 percent, Mapletree Commercial Trust skidded 0.96 percent, SATS climbed 1.01 percent, SembCorp Industries declined 0.91 percent, Singapore Airlines dropped 0.61 percent, Singapore Exchange dipped 0.19 percent, Singapore Technologies Engineering lost 0.52 percent, SingTel surrendered 0.83 percent, Thai Beverage advanced 0.73 percent, Wilmar International tumbled 1.04 percent, Yangzijiang Shipbuilding and UOL Group both plunged 1.34 percent and Mapletree Logistics Trust, Jardine Strategic Holdings, Comfort DelGro, Singapore Press Holdings and United Overseas Bank were unchanged.

The lead from Wall Street is solid as the major averages opened firmly higher on Friday and picked up steam as the session progressed.

The Dow climbed 179.39 points or 0.52 percent to finish at 34,756.39, while the NASDAQ jumped 199.99 points or 1.47 percent to end at 13.814.49 and the S&P 500 advanced 37.04 points or 0.88 percent to close at 4,229.89. For the week, the Dow rose 0.7 percent, the NASDAQ added 0.5 percent and the S&P rose 0.6 percent.

The strength on Wall Street came after the Labor Department report showed job growth in the U.S. reaccelerated in May but fell short of estimates, while the jobless rate fell to 5.8 percent.

Traders viewed the weaker than expected job growth as a Goldilocks situation, where the economy is expanding but not fast enough to encourage the Federal Reserve to tighten monetary policy.

Crude oil prices moved higher Friday amid rising hopes for increased demand and the recent OPEC decision to gradually increase crude output. West Texas Intermediate Crude oil futures for July ended up $0.81 or 1.2 percent at $69.62 a barrel, the highest settlement since October 2018.

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