Rebound Predicted For Singapore Stock Market

(RTTNews) - The Singapore stock market has alternated between positive and negative finishes through the last six trading days since the end of the two-day winning streak in which it had collected more than 30 points or 1 percent. The Straits Times Index now rests just above the 3,190-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets is negative, with weakness expected especially from the oil and technology stocks ahead of the FOMC rate decision later today. The European and U.S. markets were down and the Asian markets are predicted to follow that lead.

The STI finished modestly higher on Tuesday following gains from the financial shares, while the properties and industrials were mixed.

For the day, the index improved 11.65 points or 0.37 percent to finish at 3,192.12 after trading between 3,174.39 and 3,193.64. Volume was 1 billion shares worth 741.2 million Singapore dollars. There were 248 gainers and 183 decliners.

Among the actives, Ascendas REIT soared 1.38 percent, while CapitaLand Integrated Commercial Trust surged 1.90 percent, CapitaLand Investment plummeted 1.53 percent, City Developments gained 0.39 percent, Comfort DelGro plunged 1.38 percent, DBS Group collected 0.58 percent, Hongkong Land slumped 0.61 percent, Keppel Corp added 0.61 percent, Mapletree Commercial Trust was up 0.54 percent, Mapletree Industrial Trust rallied 1.13 percent, Mapletree Logistics Trust jumped 1.15 percent, Oversea-Chinese Banking Corporation and United Overseas Bank both climbed 0.87 percent, SATS and SingTel both advanced 0.76 percent, SembCorp Industries sank 0.34 percent, Singapore Exchange tanked 1.22 percent, Singapore Technologies Engineering fell 0.24 percent, Wilmar International lost 0.25 percent, Yangzijiang Financial spiked 1.28 percent, Yangzijiang Shipbuilding tumbled 1.09 percent and Genting Singapore and Thai Beverage were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Tuesday and remained in the red throughout the day, ending near session lows.

The Dow tumbled 228.50 points or 0.71 percent to finish at 31,761.54, while the NASDAQ plunged 220.09 points or 1.87 percent to close at 11,562.57 and the S&P 500 dropped 45.79 points or 1.15 percent to end at 3,921.05.

The weakness on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement later today. The Fed is widely expected to announce another 75 basis point rate hike as part of its efforts to combat elevated inflation.

In corporate news, Walmart came under pressure after lowering its guidance for the second quarter and full year due to pricing actions aimed to improve inventory levels. Auto giant General Motors (GM) also moved to the downside after reporting Q2 earnings that missed estimates.

In U.S. economic news, the Commerce Department said new home sales pulled back by more than expected in June. Also, the Conference Board said consumer confidence in the U.S. deteriorated by more than expected in of July.

Crude oil prices fell on Tuesday, weighed by an announcement from the Biden administration about more sales from the national oil reserve to fight inflation at the pump. The dollar's rebound from recent losses also contributed the drop in oil prices. West Texas Intermediate Crude oil futures for September ended lower by $1.72 or 1.8 percent at $94.98 a barrel.