Plus   Neg

Renewed Selling Pressure Tipped For Singapore Stock Market

The Singapore stock market rebounded on Tuesday, one session after it had snapped the three-day winning streak in which it had gathered more than 25 points or 0.8 percent. The Straits Times Index now rests just above the 3,360-point plateau although it's expected to turn lower again on Wednesday.

The global forecast for the Asian markets is soft on trade and interest rate concerns and a slide in crude oil prices. The European markets were up and the U.S. bourses were down and the Asian markets are expected to follow the latter lead.

The STI finished modestly higher on Tuesday following mixed performances from the financials, properties and industrials.

For the day, the index gained 12.08 points or 0.36 percent to finish at 3,360.03 after trading between 3,346.32 and 3,360.84. Volume was 1.17 billion shares worth 854.44 million Singapore dollars. There were 208 gainers and 182 decliners.

Among the actives, Hutchison Port Holdings surged 2.27 percent, while Yangzijiang Shipbuilding soared 2.01 percent, Comfort DelGro spiked 1.44 percent, CapitaLand Commercial Trust jumped 1.40 percent, Ascendas REIT climbed 0.98 percent, SembCorp Industries tumbled 0.83 percent, CapitaLand Mall Trust advanced 0.76 percent, Thai Beverage gathered 0.59 percent, SingTel perked 0.57 percent, Genting Singapore added 0.54 percent, CapitaLand dropped 0.54 percent, Singapore Press holdings shed 0.43 percent, DBS Group collected 0.35 percent, Singapore Exchange gained 0.25 percent, Oversea-Chinese Banking Corporation fell 0.17 percent, United Overseas Bank rose 0.15 percent, Keppel Corp eased 0.15 percent and Wilmar International, Hongkong Land and Golden Agri-Resources were unchanged.

The lead from Wall Street is uninspired as stocks fluctuated on Tuesday before pulling back from record closing highs to finish in the red.

The Dow shed 23.53 points or 0.09 percent to 27,335.63, while the NASDAQ lost 35.39 points or 0.43 percent to 8,222.80 and the S&P 500 fell 10.26 points or 0.34 percent to 3,0004.04.

Selling pressure emerged in afternoon trading after President Donald Trump told reporters U.S.-China trade talks still have a "long way to go" and once again threatened to impose tariffs on another $325 billion worth of Chinese goods.

The lower close also followed a mixed batch of U.S. economic data that led to uncertainty about the near-term outlook for interest rates. Raising concerns the Federal Reserve could refrain from cutting rates later this month, the Commerce Department noted much stronger than expected U.S. retail sales growth in June.

Crude oil prices tumbled on Tuesday amid signs U.S. and Iranian officials may renew negotiations and on reports that Hurricane Barry did not cause significant damage to oil infrastructure in the Gulf of Mexico. West Texas Intermediate Crude oil futures for August ended down $1.96 or 3.3 percent at $57.62 a barrel, the lowest mark since July 5.

Closer to home, Singapore is scheduled to release June figures for imports, exports and trade balance later today. In May, imports were worth SGD42.66 billion and exports were at SGD46.70 billion for a trade surplus of SGD4.04 billion.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT