The Singapore stock market on Wednesday snapped the two-day winning streak in which it had gained almost 30 points or 0.8 percent. The Straits Times Index now rests just above the 3,540-point plateau although it's expected to rebound on Thursday.
The global forecast for the Asian markets is upbeat thanks to solid economic news from the United States and continued support from crude oil prices. The European markets were down and the U.S. bourses were up - and the Asian markets figure to follow the latter lead.
The STI finished modestly lower on Wednesday as weakness from the financials and industrials was countered by support from the plantation stocks.
For the day, the index sank 8.30 points or 0.23 percent to finish at 3,541.91 after trading between 3,534.89 and 3,549.22. Volume was 2.12 billion shares worth 1.42 billion Singapore dollars. There were 256 decliners and 198 gainers.
Among the actives, Thai Beverage plunged 2.13 percent, while Wilmar International soared 1.57 percent, Genting Singapore spiked 1.53 percent,
DBS Group tumbled 1.13 percent, SembCorp Industries shed 0.91 percent, Keppel Corp lost 0.73 percent, Yangzijiang Shipbuilding slipped 0.62 percent, SingTel fell 0.55 percent, United Overseas Bank retreated 0.46 percent and Hutchison Port Holdings, CapitaLand, Comfort DelGro and Golden Agri-Resources were unchanged.
The lead from Wall Street is roundly positive as stocks opened higher on Wednesday and remained there throughout the session, allowing all three of the major averages to hit fresh record closing highs.
The Dow spiked 322.79 points or 1.25 percent to 26,111.65, while the NASDAQ climbed 74.59 points or 1.03 percent to 7,298.28 and the S&P 500 added 26.14 points or 0.94 percent to 2,802.56.
In economic news, the Federal Reserve's Beige Book painted a sunny picture of the U.S. economy, while respondents were optimistic about 2018 as wages increased in most districts. The Fed also noted that U.S. industrial production surged over the winter.
The earnings news wasn't as good, but it didn't seem to matter as Goldman Sachs Group Inc. (GS) and Bank of America Corp. (BAC) disappointed.
Crude oil futures rose Wednesday, staying near recent four-year highs ahead of U.S. inventories data later today. February WTI oil climbed 24 cents or 0.4 percent to $63.97/bbl.
For comments and feedback contact: editorial@rttnews.com
Market Analysis