Singapore Bourse Overdue For Consolidation

(RTTNews) - The Singapore stock market has finished higher in seven straight sessions, gathering more than 300 points or 6 percent along the way. The Straits Times Index now sits just above the 5,470-point plateau although it may run out of steam on Tuesday. The global forecast for the Asian markets is weak thanks to renewed hostilities in the Middle East and weakness among the technology companies. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The STI finished slightly higher on Monday following mixed performances among the financial shares, property stocks and industrial companies. For the day, the index perked 1.05 points or 0.02 percent to finish at 5,470.34 after trading between 5,432.55 and 5,474.85.

The lead from Wall Street is negative as the major averages opened mixed but quickly turned lower and remained under water for the balance of the session, ending near daily lows.

The Dow dropped 138.37 points or 0.26 percent to finish at 52,498.64, while the NASDAQ plummeted 408.43 points or 1.55 percent to close at 25,873.18 and the S&P 500 sank 59.92 points or 0.79 percent to end at 7,515.47.

The weakness on Wall Street followed a sharp increase by the price of crude oil amid the continued exchange of attacks between the U.S. and Iran.

U.S. Central Command said it completed a new wave of offensive strikes against Iran on Sunday, hitting dozens of targets at multiple locations with precision munitions.

Tehran responded by attacking Gulf Arab states, including Bahrain, Kuwait, Qatar, Jordan and Oman, further straining the fragile ceasefire between the two countries.

As a result, crude oil prices skyrocketed on Monday amid intense attacks between the U.S. and Iran over the weekend, renewing Middle East tensions. West Texas Intermediate crude for August delivery was up $6.87 or 9.62 percent at $78.28 per barrel. Closer to home, Singapore will provide preliminary Q2 data for gross domestic product later this morning; in the three months prior, GDP was up 3.9 percent on quarter and 6.0 percent on year.