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Singapore Stock Market May Take Further Damage On Thursday

The Singapore stock market on Wednesday snapped the two-day winning streak in which it had gained almost 25 points or 0.8 percent. The Straits Times Index now sits just beneath the 3,070-point plateau and it may extend its losses on Thursday.

The global forecast for the Asian markets is negative on concerns for overall economic growth amid the latest coronavirus wave. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

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

For the day, the index sank 39.59 points or 1.27 percent to finish at 3,068.94 after trading between 3,064.66 and 3,095.35. Volume was 1.84 billion shares worth 1.38 billion Singapore dollars. There were 351 decliners and 147 gainers.

Among the actives, Ascendas REIT plunged 1.94 percent, while CapitaLand lost 1.23 percent, CapitaLand Integrated Commercial Trust tanked 1.92 percent, City Developments tumbled 1.91 percent, Comfort DelGro was down 0.62 percent, Dairy Farm International eased 0.56 percent, DBS Group fell 1.15 percent, Genting Singapore weakened 0.64 percent, Hongkong Land jumped 2.33 percent, Keppel Corp retreated 1.72 percent, Mapletree Commercial Trust surrendered 1.45 percent, Mapletree Logistics Trust plummeted 2.37 percent, Oversea-Chinese Banking Corporation and SembCorp Industries both dipped 1.03 percent, SATS shed 1.24 percent, Singapore Airlines skidded 1.79 percent, Singapore Exchange slid 1.08 percent, Singapore Technologies Engineering slipped 0.79 percent, SingTel dropped 1.26 percent, United Overseas Bank sank 1.32 percent, Wilmar International declined 1.67 percent, Yangzijiang Shipbuilding stumbled 0.61 percent and Singapore Press Holdings and Thai Beverage were unchanged.

The lead from Wall Street suggests mild consolidation as the major averages opened lower on Wednesday and largely stayed that was throughout the session, ending with modest losses.

The Dow shed 68.93 points or 0.20 percent to finish at 35,031.07, while the NASDAQ sank 87.69 points or 0.57 percent to close at 15,286.64 and the S&P 500 fell 5.96 points or 0.13 percent to end at 4,514.07.

The weakness on Wall Street partly reflected concerns the rapid spread of the delta variant of the coronavirus may slow the global economic recovery.

Worries about the Federal Reserve scaling back its asset purchases also contributed to the selling pressure. The lower close by stocks also came after the Federal Reserve's Beige Book said U.S. economic growth downshifted slightly to a moderate pace in early July through August.

The Beige Book also said inflation was reported to be steady at an elevated pace, as half of the districts characterized the pace of price increases as strong, while half described it as moderate.

Crude oil futures settled higher on Wednesday as prices rose on reports of slow progress in the restoration of crude output in the Gulf of Mexico. West Texas Intermediate Crude oil futures for October ended up $0.95 or 1.4 percent at $69.30 a barrel.

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