Rebound Predicted For Singapore Stock Market

The Singapore stock market has alternated between positive and negative finishes through the last five trading days since the end of the three-day winning streak in which it had gained almost 60 points or 1.9 percent. The Straits Times Index now rests just above the 3,225-point plateau although it figures to bounce higher again on Tuesday.

The global forecast for the Asian markets suggests mild support thanks to bargain hunting and supported by crude oil prices. The European and U.S. markets were modestly higher and the Asian bourses are tipped to open in similar fashion.

The STI finished slightly lower on Monday following losses from the financials, gains from the industrials and a mixed picture from the property sector.

For the day, the index dipped 5.34 points or 0.17 percent to finish at 3,226.63 after trading between 3,216.12 and 3,233.96. Volume was 1.8 billion shares worth 938.8 million Singapore dollars. There were 277 gainers and 214 decliners.

Among the actives, Ascendas REIT spiked 1.43 percent, while CapitaLand Integrated Commercial Trust added 0.45 percent, City Developments climbed 0.61 percent, Comfort DelGro rallied 0.69 percent, DBS Group tumbled 0.94 percent, Hongkong Land slumped 0.77 percent, Keppel Corp gained 0.44 percent, Mapletree Industrial Trust rose 0.40 percent, Mapletree Logistics Trust advanced 0.60 percent, SATS slid 0.24 percent, SembCorp Industries jumped 1/08 percent, Singapore Exchange lost 0.31 percent, Singapore Technologies Engineering skidded 0.73 percent, SingTel fell 0.39 percent, United Overseas Bank sank 0.66 percent, Wilmar International was up 0.24 percent, Yangzijiang Financial surged 3.85 percent, Yangzijiang Shipbuilding soared 2.56 percent and Genting Singapore, Mapletree Commercial Trust, Thai Beverage, Oversea-Chinese Banking Corporation, CapitaLand Investment and Jardine Matheson were unchanged.

The lead from Wall Street ends up positive as the major averages opened sharply higher on Monday but faded throughout the session, although they still managed to finish with mild gains.

The Dow added 16.08 points or 0.05 percent to finish at 32,915.78, while the NASDAQ gained 48.64 points or 0.40 percent to close at 12,061.37 and the S&P 500 rose 12.89 points or 0.31 percent to end at 4,121.43.

The early strength on Wall Street came as traders picked up stocks at reduced levels following the sharp pullback last Friday.

Strength in overseas markets has carried over on to Wall Street amid reports of a possible U.S. tariff cut on Chinese goods.

But traders may be reluctant to take long positions ahead of consumer price inflation data due out later in the week. The numbers will be in the spotlight as traders focus on the Federal Reserve's monetary policy tightening.

Crude oil futures pared early gains and settled lower on Monday after Saudi Arabia substantially raised crude prices for July. West Texas Intermediate Crude oil futures for July ended lower by $0.37 or 0.3 percent at $118.50 after climbing to $121 a barrel earlier in the session.

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