Renewed Selling Pressure Expected For Singapore Stock Market

(RTTNews) - The Singapore stock market on Wednesday ended the three-day losing streak in which it had slumped almost 25 points or 0.7 percent. The Straits Times Index now rests just above the 3,260-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets suggests consolidation over the outlook for interest rates and likely selling in the retail sector. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The STI finished modestly higher on Wednesday as gains from the properties and industrials were capped by a mixed picture from the financial sector.

For the day, the index picked up 8.97 points or 0.28 percent to finish at 3,262.76 after trading between 3,253.46 and 3,272.06. Volume was 1.2 billion shares worth 1.1 billion Singapore dollars. There were 256 gainers and 208 decliners.

Among the actives, Ascendas REIT rose 0.34 percent, while CapitaLand Integrated Commercial Trust and SATS both gained 0.48 percent, CapitaLand Investment spiked 1.28 percent, City Developments was up 0.12 percent, DBS Group fell 0.19 percent, Genting Singapore climbed 0.62 percent, Hongkong Land perked 0.20 percent, Keppel Corp jumped 1.15 percent, Mapletree Pan Asia Commercial Trust advanced 0.52 percent, Mapletree Industrial Trust and SingTel both sank 0.74 percent, Mapletree Logistics Trust tumbled 1.10 percent, Oversea-Chinese Banking Corporation rallied 0.90 percent, SembCorp Industries gathered 0.31 percent, Singapore Exchange added 0.51 percent, Singapore Technologies Engineering lost 0.25 percent, Thai Beverage dropped 0.75 percent, United Overseas Bank eased 0.11 percent, Wilmar International soared 1.96 percent, Yangzijiang Financial surged 4.29 percent and Yangzijiang Shipbuilding, Comfort DelGro, Keppel DC REIT and DFI Retail were unchanged.

The lead from Wall Street is negative as the major averages opened lower on Wednesday, pared the losses as the day progressed but still ended firmly in the red.

The Dow dropped 171.69 points or 0.50 percent to finish at 33,980.32, while the NASDAQ tumbled 164.43 points or 1.25 percent to close at 12,938.12 and the S&P 500 slumped 31.16 points or 0.72 percent to end at 4,274.04.

The failed recovery attempt came after the Federal Reserve released the minutes of its latest monetary policy meeting, which some traders seemed to interpret as pointing to a slowdown in the pace of interest rate hikes. But the Fed minutes reaffirmed the central bank's plans to continue raising interest rates in an effort to return inflation to its 2 percent objective.

Quarterly results from Target (TGT) also weighed on the markets after reporting earnings fell well short of estimates as it cut prices in an effort to reduce excess inventory.

Traders were also reacting to a Commerce Department report showing U.S. retail sales came in flat in July amid pullbacks in gas station and auto sales.

Crude oil prices climbed higher Wednesday, lifted by data showing declines in crude and gasoline inventories in the U.S. last week. West Texas Intermediate Crude oil futures for September ended higher by $1.58 or 1.8 percent at $88.11 a barrel.