Continued Consolidation Expected For Singapore Shares

The Singapore stock market has tracked lower in back-to-back sessions, stumbling more than 30 points or 0.9 percent along the way. The Straits Times Index now rests just above the 3,430-point plateau and it’s expected to open under pressure again on Friday.

The global forecast for the Asian markets is mixed ahead of more earnings news and economic data. The European and U.S. markets were mostly lower and the Asian bourses figure to track that lead.

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

For the day, the index sank 30.37 points or 0.88 percent to finish at 3,430.45 after trading between 3,422.26 and 3,449.66.

Among the actives, CapitaLand Integrated Commercial Trust added 0.49 percent, while CapitaLand Investment and UOL Group both shed 0.74 percent, City Developments surrendered 2.02 percent, Comfort DelGro stumbled 1.43 percent, DBS Group lost 0.54 percent, Emperador and Genting Singapore both slumped 1.18 percent, Hongkong Land declined 1.19 percent, Keppel DC REIT dropped 1.04 percent, Keppel Ltd and SembCorp Industries both skidded 1.07 percent, Mapletree Pan Asia Commercial Trust plunged 3.05 percent, Mapletree Industrial Trust fell 0.44 percent, Mapletree Logistics Trust tanked 2.22 percent, Oversea-Chinese Banking Corporation tumbled 1.46 percent, SATS gained 0.31 percent, Seatrium Limited plummeted 3.29 percent, Singapore Technologies Engineering sank 0.90 percent, SingTel retreated 1.30 percent, Yangzijiang Shipbuilding was down 0.41 percent and Thai Beverage, Wilmar International and Yangzijiang Financial were unchanged.

The lead from Wall Street is weak as the major averages opened mixed, spent most of the day in positive territory before a late slump saw some of them end in the end.

The Dow gained 81.20 points or 0.20 percent to finish at 39,935.07, while the NASDAQ tumbled 160.69 points or 0.93 percent to end at 17,181.72 and the S&P 500 sank 27.91 points or 0.51 percent to close at 5,399.22.

Stocks gained in strength early in the session thanks to data showing a sharper than expected acceleration in U.S. economic growth in the second quarter.

The Commerce Department said the GDP growth reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment – while the personal consumption expenditures price index slowed to 2.6 percent.

Also, the Commerce Department said durable goods orders plummeted in June, while the Labor Department noted a slowdown in initial jobless claims last week.

Oil climbed higher on Thursday, extending recent gains after data showed a sharper than expected acceleration in U.S. GDP growth in Q2. West Texas Intermediate Crude oil futures for September rose $0.69 at $78.28 a barrel.

Closer to home, Singapore will provide June data for industrial production later today; in May, output was up 1.1 percent on month and 2.9 percent on year.