Resistance Expected At 3,100 Points

The Singapore stock market on Wednesday ended the six-day losing streak in which it had plummeted almost 200 points or 6.4 percent. The Straits Times Index now sits just beneath the 3,100-point plateau although it’s expected to open in the red again on Thursday.

The global forecast for the Asian markets is soft on lockdown concerns resulting from the Omicron strain of COVID-19. The European markets were up and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.

The STI finished sharply higher on Wednesday following gains from the financial shares, property stocks and industrial issues.

For the day, the index jumped 56.96 points or 1.87 percent to finish at 3,098.25 after trading between 3,045.13 and 3,101.52. Volume was 1.33 billion shares worth 1.78 billion Singapore dollars. There were 237 decliners and 230 gainers.

Among the actives, Ascendas REIT climbed 1.37 percent, while CapitaLand Integrated Commercial Trust fell 0.47 percent, City Developments plunged 1.71 percent, Comfort DelGro added 0.73 percent, Dairy Farm International plummeted 2.56 percent, DBS Group surged 5.06 percent, Genting Singapore tanked 1.30 percent, Keppel Corp was up 0.20 percent, Mapletree Commercial Trust rose 0.49 percent, Mapletree Logistics Trust gained 0.54 percent, Oversea-Chinese Banking Corporation spiked 2.64 percent, SATS rallied 1.32 percent, SembCorp Industries soared 2.66 percent, Singapore Airlines tumbled 1.03 percent, Singapore Exchange advanced 0.90 percent, Singapore Press Holdings collected 0.43 percent, Singapore Technologies Engineering dropped 0.52 percent, SingTel jumped 1.69 percent, Thai Beverage was down 0.75 percent, United Overseas Bank accelerated 2.59 percent, Wilmar International lost 0.49 percent and Yangzijiang Shipbuilding sank 0.75 percent.

The lead from Wall Street ends up broadly negative as the major averages opened sharply higher on Wednesday but then plummeted deep into the red in the final hour of trade.

The Dow plunged 461.68 points or 1.34 percent to finish at 34,022.04, while the NASDAQ tumbled 283.64 points or 1.83 percent to close at 15,254.05 and the S&P 500 sank 53.96 points or 1.18 percent to end at 4,513.04.

The substantial downturn on Wall Street came after the Center for Disease Control and Prevention revealed the first confirmed case of Covid-19 caused by the new Omicron variant has been detected in the U.S.

“The individual, who was fully vaccinated and had mild symptoms that are improving, is self-quarantining and has been since testing positive,” the CDC said. “All close contacts have been contacted and have tested negative.”

Traders largely shrugged off the latest U.S. economic news, including a report from payroll processor ADP showing that private sector employment increased more than expected in November. Also, the Institute for Supply Management said manufacturing activity grew at a slightly faster rate last month.

Crude oil prices showed a strong move to the upside in early trading on Wednesday but came under pressure over the course of the session on news of the Omicron case. Crude for January delivery slumped $0.61 or 0.9 percent $65.57 a barrel, its lowest closing level in three months.