Renewed Selling Pressure Likely For Singapore Stock Market

The Singapore stock market inched higher again on Thursday, one day after ending the two-day winning streak in which it had collected almost 15 points or 0.5 percent. The Straits Times Index now rests just beneath the 3,325-point plateau although it’s likely to head south again on Friday.

The global forecast for the Asian markets is one of caution ahead of key inflation data later today. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The STI finished barely higher on Thursday following mixed performances from the financial shares, property stocks and industrial issues.

For the day, the index perked 0.18 points or 0.01 percent to finish at 3,323.38 after trading between 3,307.54 and 3,326.65.

Among the actives, CapitaLand Ascendas REIT advanced 0.76 percent, while CapitaLand Investment dropped 0.75 percent, City Developments slid 0.50 percent, Comfort DelGro added 0.71 percent, DBS Group dipped 0.20 percent, Emperador climbed 1.16 percent, Genting Singapore gained 0.56 percent, Hongkong Land shed 0.60 percent, Keppel DC REIT fell 0.56 percent, Mapletree Industrial Trust rose 0.46 percent, SATS surged 6.08 percent, Seatrium Limited skyrocketed 1,900.00 percent, SembCorp Industries tumbled 1.72 percent, Singapore Technologies Engineering rallied 1.22 percent, Thai Beverage slumped 0.99 percent, Wilmar International sank 0.64 percent, Yangzijiang Financial retreated 1.54 percent, Yangzijiang Shipbuilding soared 2.27 percent and Mapletree Logistics Trust, Oversea-Chinese Banking Corporation, Keppel Ltd, Mapletree Pan Asia Commercial Trust, CapitaLand Integrated Commercial Trust, SingTel and Frasers Logistics were unchanged.

The lead from Wall Street is negative as the major averages opened solidly lower on Thursday and remained well in the red throughout the trading day, ending near session lows.

The Dow plunged 330.06 points or 0.86 percent to finish at 38,111.48, while the NASDAQ tumbled 183.50 points or 1.08 percent to end at 16,737.08 and the S&P 500 sank 31.47 points or 0.60 percent to close at 5,235.48.

The weakness on Wall Street was fueled by concerns about the outlook for interest rates ahead of the release of closely watched inflation data later today, which includes readings said to be preferred by the Federal Reserve.

A nosedive by shares of Salesforce (CRM) weighed on the Dow, with the software company plunging 19.7 percent after reporting weaker than expected revenues and guidance.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits crept modestly higher last week. Also, the Commerce Department said gross domestic product was revised down to 1.3 percent in Q1 from 1.6 percent.

Oil futures ended sharply lower on Thursday as a jump in gasoline inventories weighed on oil prices. West Texas Intermediate Crude oil futures for July ended down by $1.32 or 1.7 percent at $77.91 a barrel.