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Renewed Consolidation Expected For Singapore Stock Market

(RTTNews) – The Singapore stock market bounced higher again on Tuesday, one session after halting the two-day winning streak in which it had advanced almost 30 points or 1 percent. The Straits Times Index now sits just above the 3,080-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets is soft due to the outlook for interest rates, despite encouraging data. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The STI finished slightly higher on Tuesday following gains from the financial shares and property stocks.

For the day, the index added 6.06 points or 0.20 percent to finish at 3,080.37 after trading between 3,077.14 and 3,091.74.

Among the actives, Hongkong Land plummeted 2.53 percent, while Singapore Technologies Engineering surged 1.33 percent, Venture Corporation soared 1.19 percent, City Developments spiked 1.14 percent, Dairy Farm International tumbled 1.12 percent, Singapore Press Holdings skidded 1.02 percent, United Overseas Bank jumped 1.02 percent, Keppel Corp and SATS both climbed 0.77 percent, Thai Beverage retreated 0.75 percent, Ascendas REIT rallied 0.66 percent, SembCorp Industries sank 0.53 percent, Mapletree Logistics Trust advanced 0.49 percent, Mapletree Commercial Trust added 0.48 percent, SingTel gained 0.42 percent, Wilmar International lost 0.24 percent, Singapore Exchange rose 0.20 percent, Oversea-Chinese Banking Corporation and DBS Group both collected 0.17 percent and Yangzijiang Shipbuilding, Genting Singapore, CapitaLand Integrated Commercial Trust, Singapore Airlines, Comfort DelGro and CapitaLand all were unchanged.

The lead from Wall Street is negative as the major averages opened higher on Tuesday but quickly turned lower and finished in the red.

The Dow tumbled 292.06 points or 0.84 percent to finish at 34,577.57, while the NASDAQ sank 67.82 points or 0.45 percent to close at 15,037.76 and the S&P 500 fell 25.68 points or 0.57 percent to end at 4,443.05.

Stocks initially benefited from a positive reaction to a highly anticipated Labor Department report showing consumer prices increased less than expected in August. The relatively tame inflation data generated optimism that the Federal Reserve may delay plans to begin scaling back stimulus.

However, subsequent comments from economists suggested that the Fed is still likely to begin tapering its asset purchases as soon as December.

The Fed is scheduled to hold a monetary policy meeting next week, with many expecting the central bank to provide an update on the outlook for its asset purchase program.

Crude oil futures settled slightly higher Tuesday after the Labor Department said U.S. consumer prices increased less than expected last month, while traders also weighed the impact of tropical storm Nicholas. Crude oil futures settled at $70.46 a barrel, up a penny from the previous close.

Closer to home, Singapore will provide Q2 figures for unemployment later today; in the previous three months, the jobless rate was 2.9 percent.

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