Soft Start Seen For Singapore Stock Market

(RTTNews) – The Singapore stock market has moved lower in three straight sessions, sinking almost 50 points or 1.6 percent along the way. The Straits Times Index now rests just above the 3,180-point plateau and it’s tipped to open under pressure again on Monday.

The global forecast for the Asian markets is sharply negative on growing interest rate and inflation concerns. The European and US markets took heavy damage and the Asian bourses are tipped to open in similar fashion.

The STI finished modestly lower on Friday following losses from the financial shares, property stocks and industrial issues.

For the day, the index lost 27.89 points or 0.87 percent to finish at 3,181.73 after trading between 3,176.17 and 3,192.56. Volume was 1 billion shares worth 947.2 million Singapore dollars. There were 288 decliners and 187 gainers.

Among the actives, Ascendas REIT lost 0.70 percent, while CapitaLand Integrated Commercial Trust weakened 0.89 percent, CapitaLand Investment slipped 0.52 percent, City Developments slid 0.60 percent, Comfort DelGro fell 0.69 percent, DBS Group dropped 0.76 percent, Hongkong Land jumped 1.60 percent, Keppel Corp eased 0.29 percent, Mapletree Commercial Trust slipped 0.55 percent, Mapletree Industrial Trust retreated 1.19 percent, Mapletree Logistics Trust plunged 1.76 percent, Oversea-Chinese Banking Corporation surrendered 1.28 percent, SATS sank 0.73 percent, SembCorp Industries tanked 1.42 percent, Singapore Exchange was down 0.51 percent, Singapore Technologies Engineering declined 1.21 percent, SingTel slumped 0.79 percent, United Overseas Bank tumbled 1.32 percent, Wilmar International shed 0.72 percent, Yangzijiang Financial plummeted 1.96 percent, Yangzijiang Shipbuilding skidded 1.00 and percent Genting Singapore and Thai Beverage were unchanged.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Friday and remained that way throughout the session, ending with heavy losses.

The Dow plummeted 880.00 points or 2.73 percent to finish at 31,392.79, while the NASDAQ plunged 414.20 points or 3.52 percent to close at 11,340.02 and the S&P 500 tumbled 116.96 points or 2.91 percent to end at 3,900.86.

For the week, the Dow plunged 4.6 percent, the NASDAQ tanked 5.6 percent and the S&P 500 sank 5.1 percent.

The sell-off on Wall Street came after the Labor Department released a report showing consumer prices in the US shot up by more than expected in the month of May, raising concerns about the outlook for interest rates.

The inflation spike is likely to convince the Federal Reserve to follow through on its plans to aggressively raise interest rates in an effort to combat inflation. The Fed will announce its latest monetary policy decision on Wednesday, with the central bank widely expected to raise interest rates by another 50 basis points.

Crude oil prices fell on Friday as the dollar surged higher after data showing a steep acceleration in US inflation fears of more aggressive rate hikes by the Federal Reserve. West Texas Intermediate Crude oil futures for July ended lower by $0.84 or 0.7 percent at $120.67 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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