More Pain Predicted For Singapore Stock Market

The Singapore stock market has finished lower in two straight sessions, sinking more than 20 points or 0.6 percent along the way. The Straits Times Index now rests just beneath the 3,210-point plateau and it’s tipped to open under pressure again on Friday.

The global forecast for the Asian markets is soft on concerns for inflation and economic growth. The European and U.S. markets were firmly lower and the Asian bourses are tipped to open in similar fashion.

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

For the day, the index slipped 16.18 points or 0.50 percent to finish at 3,209.62 after trading between 3,198.38 and 3,225.26. Volume was 1.9 billion shares worth 1.3 billion Singapore dollars. There were 254 decliners and 210 gainers.

Among the actives, Ascendas REIT gained 0.35 percent, while CapitaLand Integrated Commercial Trust shed 0.44 percent, CapitaLand Investment rose 0.26 percent, DBS Group slumped 0.49 percent, Hongkong Land plummeted 5.47 percent, Keppel Corp added 0.58 percent, Mapletree Logistics Trust advanced 0.59 percent, Oversea-Chinese Banking Corporation declined 1.09 percent, SembCorp Industries jumped 1.44 percent, Singapore Exchange eased 0.10 percent, Singapore Technologies Engineering lost 0.24 percent, SingTel fell 0.39 percent, Thai Beverage and Fraser Logistics both retreated 0.74 percent, United Overseas Bank tumbled 1.23 percent, Wilmar International perked 0.24 percent, Yangzijiang Financial plunged 2.86 percent and Yangzijiang Shipbuilding, Genting Singapore, City Developments, Comfort DelGro, Mapletree Commercial Trust, Mapletree Industrial Trust and SATS were unchanged.

The lead from Wall Street broadly negative as the major averages opened slightly lower on Thursday but the losses accelerated sharply in the final hour of trade, sending them deep into the red at the finish.

The Dow plunged 638.11 points or 1.94 percent to finish at 32,272.79, while the NASDAQ plummeted 332.04 points or 2.75 percent to end at 11,754.23 and the S&P 500 sank 97.95 points or 2.38 percent to close at 4,017.82.

The sell-off on Wall Street came as traders looked ahead to the release of a Labor Department report on consumer price inflation later today. The report is expected to show that consumer prices increased by 0.7 percent in May after rising by 0.3 percent in April.

The inflation data could have an impact on the outlook for monetary policy ahead of the Federal Reserve’s decision on interest rates next Wednesday.

On the economic front, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rose by more than expected in the week ended June 4th.

Crude oil prices drifted lower on Thursday as demand concerns resurfaced following authorities in Shanghai imposing new Covid-related restrictions. West Texas Intermediate Crude oil futures for July ended down by $0.60 or 0.5 percent at $121.51 a barrel.