Lower Open Called For Singapore Stock Market

(RTTNews) - The Singapore stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had risen more than 25 points or 0.8 percent. The Straits Times Index now sits just above the 3,185-point plateau and it's likely to open in the red again on Monday.

The global forecast for the Asian markets is soft on inflation worries and geopolitical concerns. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

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

For the day, the index dropped 32.90 points or 1.02 percent to finish at 3,185.79 after trading between 3,184.48 and 3,197.31.

Among the actives, Ascendas REIT slumped 1.47 percent, while CapitaLand Integrated Commercial Trust sank 1.09 percent, CapitaLand Investment retreated 1.58 percent, City Developments declined 1.62 percent, Comfort DelGro and Keppel Corp both stumbled 1.48 percent, DBS Group slid 0.68 percent, Emperador shed 0.98 percent, Genting Singapore dropped 1.18 percent, Hongkong Land plummeted 3.12 percent, Mapletree Pan Asia Commercial Trust surrendered 2.13 percent, Mapletree Industrial Trust dipped 0.45 percent, Mapletree Logistics Trust skidded 1.24 percent, Oversea-Chinese Banking Corporation fell 0.76 percent, Seatrium Limited lost 0.79 percent, SembCorp Industries tanked 2.26 percent, Singapore Technologies Engineering eased 0.25 percent, SingTel tumbled 2.06 percent, Wilmar International plunged 2.72 percent, Yangzijiang Financial rallied 1.41 percent, Yangzijiang Shipbuilding surged 2.52 percent and SATS and Thai Beverage were unchanged.

The lead from Wall Street is mostly negative as the major averages opened higher on Friday but quickly headed south, although the Dow was able to recover before the close.

The Dow added 39.15 points or 0.12 percent to finish at 33,670.29, while the NASDAQ tumbled 166.99 points or 1.23 percent to end at 13,407.23 and the S&P 500 slumped 21.83 points or 0.50 percent to close at 4,327.78.

For the week, the Dow added 0.8 percent, the NASDAQ dipped 0.2 percent and S&P rose 0.5 percent.

Selling pressure emerged following the release of a report from the University of Michigan showing a slump in consumer sentiment and a surge in inflation expectations. The data generated some negative sentiment, although a decrease in treasury yields helped to limit the downside.

Traders also kept an eye on developments in the conflict in the Middle East between Israel and Hamas.

Oil prices rose sharply on Friday amid rising concerns about the potential impact on global crude supplies due to the ongoing conflict between Israel and Hamas. West Texas Intermediate Crude oil futures for November spiked $4.78 or 5.8 percent at $87.69 a barrel. WTI crude futures gained 6 percent in the week.