Singapore Stock Market May Take Further Damage On Friday

The Singapore stock market on Thursday ended the three-day winning streak in which it had improved more than 60 points or 1.9 percent. The Straits Times Index now rests just above the 3,190-point plateau and it’s likely to open in the red again on Friday.

The global forecast for the Asian markets is negative, with selling pressure expected among the technology, transportation and tobacco stocks. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

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

For the day, the index dropped 34.64 points or 1.07 percent to finish at 3,190.71 after trading between 3,177.09 and 3,218.14. Volume was 1.42 billion shares worth 1.38 billion Singapore dollars. There were 339 decliners and 152 gainers.

Among the actives, Ascendas REIT was down 0.37 percent, while CapitaLand Integrated Commercial Trust tumbled 1.75 percent, CapitaLand Investment sank 1.04 percent, City Developments surrendered 1.72 percent, Comfort DelGro retreated 1.35 percent, Dairy Farm International, DBS Group dropped 0.99 percent, Genting Singapore tanked 1.91 percent, Hongkong Land slid 0.63 percent, Keppel Corp dipped 0.59 percent, Mapletree Commercial Trust slipped 0.55 percent, Mapletree Industrial Trust shed 0.82 percent, Mapletree Logistics Trust skidded 1.23 percent, Oversea-Chinese Banking Corporation declined 1.61 percent, SATS eased 0.23 percent, SembCorp Industries gave away 0.35 percent, Singapore Exchange fell 0.72 percent, Singapore Technologies Engineering and Fraser Logistics both lost 0.74 percent, SingTel stumbled 1.47 percent, Thai Beverage jumped 1.44 percent, United Overseas Bank weakened 1.32 percent, Wilmar International plunged 2.14 percent, Yangzijiang Financial plummeted 4.88 percent and Yangzijiang Shipbuilding climbed 1,14 percent.

The lead from Wall Street is soft as the major averages opened mixed on Thursday before finally turning lower for good and finishing in the red.

The Dow plummeted 236.94 points or 0.75 percent to finish at 31,253.13, while the NASDAQ shed 29.66 points or 0.26 percent to close at 11,388.50 and the S&P 500 sank 22.89 points or 0.58 percent to end at 3,900.79.

The volatility on the day came as traders continued to debate when the markets will reach a bottom, with the S&P 500 closing in on bear market territory.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits unexpectedly increased last week, while the National Association of Realtors said existing home sales slumped in April. Also, the Federal Reserve Bank of Philadelphia noted a slowdown in in regional manufacturing activity.

Crude oil prices rallied sharply on Thursday amid expectations of a pickup in energy demand on reports Chinese officials are planning to ease restrictions in Shanghai. The dollar’s weakness also contributed significantly to the rise in oil prices. West Texas Intermediate Crude oil futures for June ended higher by $2.62 or 2.4 percent at $112.21 a barrel.