The Singapore stock market bounced higher again on Wednesday, one day after halting the eight-day winning streak in which it had advanced almost 125 points or 4 percent. The Straits Times Index now sits just above the 3,280-point plateau although it figures to head south again on Thursday.
The global forecast for the Asian markets suggests further consolidation as rising bond yields continue to hammer technology stocks – although support from crude oil may limit the downside. The European markets were up and the U.S. markets were down and the Asian markets figure to follow the latter lead.
The STI finished slightly higher on Wednesday following gains from the financials and mixed performances from the financials and properties.
For the day, the index added 3.90 points or 0.12 percent to finish at 3,283.94 after trading between 3,273.96 and 3,297.87. Volume was 1.34 billion shares worth 1.22 billion Singapore dollars. There were 267 decliners and 185 gainers.
Among the actives, CapitaLand Integrated Commercial Trust gained 0.50 percent, while City Developments lost 0.42 percent, Comfort DelGro and Hongkong Land both rallied 0.73 percent, Dairy Farm International soared 1.40 percent, DBS Group collected 0.03 percent, Keppel Corp climbed 0.57 percent, Mapletree Commercial Trust added 0.54 percent, Mapletree Logistics Trust advanced 0.56 percent, Oversea-Chinese Banking Corporation eased 0.16 percent, SATS sank 0.50 percent, SembCorp Industries surged 3.29 percent, Singapore Airlines rose 0.40 percent, Singapore Exchange perked 0.31 percent, Singapore Technologies Engineering was up 0.27 percent, United Overseas Bank dipped 0.30 percent, Wilmar International spiked 1.18 percent, Yangzijiang Shipbuilding jumped 0.76 percent and Genting Singapore, Ascendas REIT, Thai Beverage, SingTel and Singapore Press Holdings were unchanged.
The lead from Wall Street is broadly negative as the major averages were unable to hold on to early gains on Wednesday, bouncing back and forth across the unchanged line before finishing in the red for the second straight session.
For the day, the Dow tumbled 339.82 points or 0.96 percent to finish at 35,028.65, while the NASDAQ dropped 166.64 points or 1.15 percent to close at 14,340.25 and the S&P 500 sank 44.35 points or 0.97 percent to end at 4.532.76.
The late slide on Wall Street came amid rising Treasury yields and worries over inflation and looming interest rate hikes after U.S. Treasury yields hit fresh two-year highs amid Fed rate hike expectations.
Most analysts believe a rate hike of at least 25 basis points from the FOMC is imminent, although some are now starting to think it may be a 50 bp boost.
In economic news, the Commerce Department said that U.S. homebuilding increased to a nine-month high in December amid a surge in multi-family housing projects.
Crude oil prices continued their recent upward surge on Wednesday, rising for the fifth straight day to a fresh seven-year high following supply issues in the Middle East. West Texas Intermediate for February contract jumped $1.22 or 1.43 percent to $86.65 per barrel.
Market Analysis
Renewed Selling Pressure Predicted For Singapore Stock Market
2022-01-20 00:00:15
