Singapore Bourse Set To Stop The Bleeding On Thursday

The Singapore stock market has moved lower in consecutive trading days, sinking almost 10 points or 0.3 percent along the way. The Straits Times Index now sits just above the 3,225-point plateau although it's expected to find traction on Thursday.

The global forecast for the Asian markets is flat to higher on easing treasury yield concerns and a rebound among technology stocks. The European markets were mixed and the U.S. bourses were mostly higher and the Asian markets figure to follow that lead.

The STI finished barely lower on Wednesday as losses from the financial shares were offset by support from the industrials.

For the day, the index eased 0.38 points or 0.01 percent to finish at 3,227.15 after trading between 3,226.56 and 3,239.84. Volume was 1.64 billion shares worth 1.03 billion Singapore dollars. There were 243 gainers and 210 decliners.

Among the actives, Ascendas REIT advanced 0.66 percent, while City Developments soared 1.13 percent, Comfort DelGro rallied 0.67 percent, Dairy Farm International jumped 0.95 percent, DBS Group eased 0.03 percent, Keppel Corp gained 0.56 percent, Mapletree Commercial Trust climbed 0.94 percent, Mapletree Logistics Trust plunged 2.05 percent, SATS sank 0.49 percent, SembCorp Industries added 0.50 percent, Singapore Exchange and United Overseas Bank both lost 0.43 percent, Singapore Press Holdings rose 0.43 percent, Wilmar International dropped 0.46 percent, Yangzijiang Shipbuilding surged 2.31 percent and Genting Singapore, CapitaLand Integrated Commercial Trust, Singapore Technologies Engineering, Thai Beverage, Oversea-Chinese Banking Corporation, Singapore Airlines and SingTel were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened sharply lower on Wednesday but clawed back as the day progressed, with the NASDAQ and S&P 500 managing to finish higher while the Dow ended barely in the red.

The Dow shed 9.42 points or 0.03 percent to finish at 35,804.38, while the NASDAQ jumped 70.09 points or 0.44 percent to close at 15,845.23 and the S&P 500 rose 10.76 points or 0.23 percent to end at 4,701.46.

The early weakness on Wall Street came amid a continued increase in U.S. treasury yields, with the yield on the benchmark ten-year note reaching its highest intraday level in six months. Yields showed a notable downturn over the course of the trading day, however, contributing to the rebound on Wall Street.

A Labor Department report showing first-time claims for U.S. unemployment benefits slid to their lowest level in over fifty years last week helped push yields higher.

Also, the Commerce Department noted an unexpected drop in durable goods orders but an increase in new home sales in October, while personal income and spending both increased by more than expected during the month.

Crude oil futures settled slightly lower on Wednesday after data showed a modest increase in U.S. crude stockpiles last week. West Texas Intermediate crude oil futures ended down by $0.11 or 0.14 percent at $78.39 a barrel.

Closer to home, Singapore will provide Q3 data for its current account later today; in the three months prior, the current account surplus was $25.64 billion.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT