Singapore Shares Likely To Remain Rangebound

(RTTNews) - The Singapore stock market ticked lower again on Wednesday, one day after ending the three-day slide in which it had slipped almost 50 points or 1.2 percent. The Straits Times Index now sits just above the 4,510-point plateau although it may move back to the upside again on Thursday.

The global forecast for the Asian markets is upbeat following the FOMC's rate decision and optimism over future moves. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The STI finished barely lower on Wednesday following mixed performances from the financial shares, property stocks and industrial issues.

For the day, the index eased 1.34 points or 0.03 percent to finish at 4,511.90 after trading between 4,492.46 and 4,520.96.

Among the actives, CapitaLand Ascendas REIT dropped 0.36 percent, while CapitaLand Integrated Commercial Trust slumped 0.43 percent, City Developments declined 0.69 percent, DFI Retail Group stumbled 1.97 percent, Hongkong Land fell 0.15 percent, Keppel DC REIT contracted 0.45 percent, Keppel Ltd skidded 0.39 percent, Mapletree Logistics Trust retreated 0.78 percent, Oversea-Chinese Banking Corporation advanced 0.85 percent, SATS and United Overseas Bank both shed 0.29 percent, Seatrium Limited tanked 1.44 percent, SembCorp Industries sank 0.34 percent, Singapore Technologies Engineering eased 0.12 percent, SingTel lost 0.22 percent, UOL Group tumbled 0.99 percent, Yangzijiang Shipbuilding added 0.59 percent and Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, Comfort DelGro, DBS Group, Wilmar International, Yangzijiang Financial, CapitaLand Investment, Thai Beverage, Genting Singapore and Jardine Matheson were unchanged.

The lead from Wall Street is positive as the major averages opened flat and hugged the line before taking off late in the day.

The Dow jumped 497.46 points or 1.05 percent to finish at 48,057.75, while the NASDAQ added 77.67 points or 0.33 percent to close at 23,654.16 and the S&P 500 gained 46.17 points or 0.67 percent to end at 6,886.68.

The late-day strength on Wall Street came after the Fed announced its widely expected decision to cut interest rates by another quarter point, matching the rate cuts seen in September and October.

While a majority of Fed officials voted to cut rates by another quarter point, three cast dissenting votes for the first time since September 2019. The central bank's latest summary of economic projections also showed significant divisions about the outlook for rates.

Despite the mixed views, traders seem optimistic about the outlook for rates, potentially reflecting hopes for a move dovish regime under President Donald Trump's new Fed Chair choice.

Crude oil prices edged higher Wednesday after the American Petroleum Institute said U.S. crude inventories decreased much more than expected. West Texas Intermediate crude for January delivery was up $0.20 or 0.34 percent at $58.45 per barrel.

Closer to home, Singapore will provide Q3 figures for unemployment later today; in the previous three months, the jobless rate was 2.0 percent.