Singapore Shares May Run Out Of Steam On Friday

(RTTNews) - The Singapore stock market has tracked higher in four straight sessions, collecting more than 25 points or 0.5 percent along the way. The Straits Times Index now sits just above the 5,215-point plateau although the rally may stall on Friday.

The global forecast for the Asian markets is weak on continuing tensions in the Middle East and weak economic data. The European markets were up and the U.S. bourses were mixed to lower and the Asian markets figure to follow the latter lead.

The STI finished barely higher on Thursday following mixed performances from the financial shares, property stocks and industrial companies.

For the day, the index perked 2.97 points or 0.06 percent to finish at 5,218.96 after trading between 5,212.69 and 5,232.64.

Among the actives, CapitaLand Integrated Commercial Trust gained 0.42 percent, while CapitaLand Investment rallied 1.20 percent, City Developments contracted 1.12 percent, DBS Group and SingTel both fell 0.23 percent, DFI Retail Group sank 0.79 percent, Genting Singapore dropped 0.82 percent, Hongkong Land dipped 0.14 percent, Keppel DC REIT lost 0.44 percent, Keppel Ltd and Wilmar International both rose 0.27 percent, Mapletree Industrial Trust added 0.52 percent, Mapletree Logistics Trust improved 0.82 percent, Oversea-Chinese Banking Corporation eased 0.04 percent, SATS soared 2.51 percent, Seatrium Limited slumped 1.01 percent, SembCorp Industries increased 0.62 percent, Singapore Airlines jumped 1.87 percent, Singapore Exchange vaulted 1.60 percent, Singapore Technologies Engineering retreated 1.50 percent, Thai Beverage tumbled 2.25 percent, United Overseas Bank perked 0.03 percent, UOL Group shed 0.72 percent, Yangzijiang Shipbuilding skidded 0.85 percent and CapitaLand Ascendas REIT and Mapletree Pan Asia Commercial Trust were unchanged.

The lead from Wall Street is soft as the major averages opened slightly higher on Thursday but spent most of the day bouncing back and forth across the line, finally ending mixed.

The Dow added 71.72 points or 0.14 percent to finish at 51,920.62, while the NASDAQ slumped 118.03 points or 0.46 percent to end at 25,358.60 and the S&P 500 dipped 0.73 points or 0.01 percent to close at 7,357.49.

The aimless trade came as investors digested a slew of economic data and some corporate news, including earnings update from Micron Technology - which rallied on stronger-than-expected earnings and an upward revision in revenue forecast.

In economic news, the Labor Department showed the core PCE price index - which is the Federal Reserve's preferred gauge of underlying inflation - moved further above the Federal Reserve's percent target. Also, the Commerce Department said new orders dropped more than expected, while jobless claims were down from a week earlier and GDP slowed in the first quarter.

Traders also kept an eye on developments in the Middle East as tensions along the Strait of Hormuz persist.

Crude oil prices jumped on Thursday as supply disruption threats reappeared after a projectile hit a cargo ship near Oman across the Strait of Hormuz. West Texas Intermediate crude for August delivery was up $1.49 or 2.12 percent at $71.83 per barrel.

Closer to home, Singapore will on Friday release May figures for industrial production later today. Production is expected to rise 2.0 percent on month and 17.0 percent on year following the 5.8 percent monthly increase and the 17.6 percent spike in April.