Singapore Stock Market Expected To Run Out Of Steam On Thursday

The Singapore stock market has moved higher in three straight sessions, gathering more than 60 points or 1.9 percent along the way. The Straits Times Index now rests just above the 3,225-point plateau although it may spin its wheels on Thursday.

The global forecast for the Asian markets suggests consolidation on profit taking, with oil and retail stocks leading the way lower. The European and U.S. markets were down and the Asian markets are tipped to follow that lead.

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

For the day, the index advanced 23.46 points or 0.73 percent to finish at 3,225.35 after trading between 3,214.14 and 3,241.83. Volume was 1.61 billion shares worth 1.34 billion Singapore dollars.

Among the actives, Ascendas REIT was up 0.37 percent, while CapitaLand Integrated Commercial Trust perked 0.44 percent, City Developments dipped 0.12 percent, Comfort DelGro and Oversea-Chinese Banking Corporation both added 0.68 percent, Dairy Farm International spiked 2.18 percent, DBS Group collected 0.52 percent, Genting Singapore gained 0.64 percent, Hongkong Land accelerated 1.72 percent, Keppel Corp soared 2.42 percent, Mapletree Commercial Trust gathered 0.55 percent, Mapletree Industrial Trust increased 0.41 percent, SATS rose 0.45 percent, SembCorp Industries jumped 1.43 percent, Singapore Exchange climbed 0.83 percent, Singapore Technologies Engineering lost 0.25 percent, Thai Beverage advanced 0.72 percent, United Overseas Bank strengthened 0.91 percent, Wilmar International rallied 0.96 percent, Yangzijiang Financial tumbled 1.20 percent, Yangzijiang Shipbuilding surged 6.67 percent and CapitaLand Investment, Mapletree Logistics Trust and SingTel were unchanged.

The lead from Wall Street is brutally negative as the major averages opened lower on Wednesday and saw the losses accelerate as the day progressed, ending deep in the red.

The Dow plummeted 1,164.52 points or 3.57 percent to finish at 31,490.07, while the NASDAQ plunged 566.37 points or 4.73 percent to close at 11,418.15 and the S&P 500 tumbled 165.17 points or 4.04 percent to end at 3,923.68.

Retail stocks led the markets lower, with the Dow Jones U.S. Retail Index plunging 7.7 percent to its lowest closing level in almost two years. Target (TGT) posted a particularly steep loss after the discount retailer reported quarterly earnings that missed expectations.

Substantial weakness was also visible among transportation stocks, as reflected by the 7.4 percent drop by the Dow Jones Transportation Average. Housing stocks also saw significant weakness on the day, dragging the Philadelphia Housing Sector Index down by 4.6 percent.

In economic news, the Commerce Department noted a modest decrease in new residential construction and building permits in April.

Crude oil futures settled lower on Wednesday despite data showing a drop in crude inventories last week. A stronger dollar amid rising prospects of sharper interest rate hikes by the Federal Reserve also contributed to the decline. West Texas Intermediate Crude oil futures for ended lower by $2.81 or about 2.5% at $109.59 a barrel.

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