Rally Expected To Stall For Singapore Stock Market

(RTTNews) - The Singapore stock market has ticked higher inconsecutive trading days, collecting almost 15 points or 0.5 percent along the way. The Straits Times Index now rests just above the 3,245-point plateau although it may run out of steam on Wednesday.

The global forecast for the Asian markets suggests consolidation, thanks to renewed concerns over the outlook for interest rates. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.

The STI finished slightly higher on Tuesday following mixed performances from the industrials, financial shares and REITS, while the properties were soft.

For the day, the index perked 5.96 points or 0.18 percent to finish at 3,245.27 after trading between 3,233.35 and 3,264.72.

Among the actives, Ascendas REIT rose 0.36 percent, while CapitaLand Integrated Commercial Trust jumped 1.60 percent, CapitaLand Investment retreated 1.10 percent, City Developments dropped 0.53 percent, DBS Group perked 0.06 percent, Emperador skidded 0.99 percent, Genting Singapore advanced 0.95 percent, Hongkong Land fell 0.44 percent, Keppel Corp declined 1.09 percent, Mapletree Pan Asia Commercial Trust gained 0.58 percent, Oversea-Chinese Banking Corporation climbed 1.44 percent, SATS sank 0.79 percent, SembCorp Industries added 0.80 percent, Singapore Technologies Engineering slid 0.29 percent, United Overseas Bank eased 0.17 percent, Wilmar International lost 0.50 percent, Yangzijiang Shipbuilding tumbled 1.48 percent and Mapletree Industrial Trust, Mapletree Logistics Trust, Yangzijiang Financial, SingTel, Thai Beverage and Comfort DelGro were unchanged.

The lead from Wall Street is broadly negative as the major averages opened flat on Tuesday but quickly turned lower, finishing near daily lows.

The Dow plunged 574.98 points or 1.72 percent to finish at 32,856.46, while the NASDAQ sank 145.41 points or 1.25 percent to end at 11,530.33 and the S&P 500 dropped 62.05 points or 1.53 percent to close at 3,986.37.

The sell-off on Wall Street reflected a negative reaction to Federal Reserve Chair Jerome Powell's highly anticipated semiannual monetary policy testimony before the Senate Banking Committee.

Citing stubbornly elevated inflation and stronger than expected economic data, Powell told lawmakers the "ultimate level of interest rates is likely to be higher than previously anticipated."

Powell also said the Fed would be prepared to reaccelerate the pace of rate hikes and for a longer period if incoming data were to indicate that faster tightening is warranted.

Crude oil prices tumbled Tuesday on renewed uncertainty about energy demand, while a surging greenback also weighed on the commodity. West Texas Intermediate Crude oil futures for April slumped $2.88 or 3.6 percent at $77.58 a barrel.