Singapore Stock Market May Add To Its Winnings

(RTTNews) - The Singapore stock market has tracked higher in five straight sessions, collecting more than 90 points or 2.4 percent along the way. The Straits Times Index now rests just beneath the 3,800-point plateau and it's tipped to open in the green again on Thursday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates, although geopolitics may limit the upside. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The STI finished modestly higher on Wednesday as gains from the financials and industrials were capped by weakness from the REITs and a mixed picture from the property sector.

For the day, the index improved 13.81 points or 0.36 percent to finish at 3,799.94 after trading between 3,790.47 and 3,812.04.

Among the actives, CapitaLand Investment gathered 0.36 percent, while City Developments gained 0.76 percent, DBS Group rose 0.71 percent, Emperador skidded 1.19 percent, Genting Singapore tumbled 1.27 percent, Hongkong Land dropped 0.88 percent, Keppel DC REIT plunged 2.65 percent, Keppel Ltd perked 0.29 percent, Mapletree Industrial Trust sank 0.87 percent, Mapletree Logistics Trust shed 0.77 percent, Oversea-Chinese Banking Corporation collected 0.56 percent, SATS added 0.80 percent, Seatrium Limited rallied 1.00 percent, SembCorp Industries spiked 1.66 percent, Singapore Technologies Engineering advanced 0.88 percent, SingTel climbed 0.96 percent, Thai Beverage plummeted 4.20 percent, Wilmar International slumped 0.96 percent, Yangzijiang Financial jumped 1.25 percent, Yangzijiang Shipbuilding surged 2.79 percent and CapitaLand Integrated Commercial Trust, Comfort DelGro and Mapletree Pan Asia Commercial Trust were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday and remained in the green throughout the session before all ending at record closing highs.

The Dow rallied 308.51 points or 0.69 percent to finish at 45,014.04, while the NASDAQ spiked 254.21 points or 1.30 percent to close at 19,735.12 and the S&P gained 36.61 points or 0.61 percent to end at 6,086.49.

The strength on Wall Street was generated by optimism about the outlook for interest rates following the release of some weaker than expected U.S. economic data.

Payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in November. Also, the Institute for Supply Management showed U.S. service sector growth slowed more than anticipated last month.

Following the data, CME Group's FedWatch Tool is indicating a 75.5 percent chance the Federal Reserve will lower interest rates by 25 basis points later this month.

However, during remarks later in the afternoon, Fed Chair Jerome Powell reiterated the central bank will take a cautious approach to cutting rates due to the continued strength of the economy.

Crude oil prices tumbled on Wednesday on geopolitical concerns in the Middle East and in the Russia/Ukraine conflict, as well as political chaos in South Korea and France. West Texas Intermediate Crude oil futures for January closed down $1.40 or 2 percent at $68.54 a barrel.

Closer to home, Singapore will see October data for retail sales later today; in September, sales were up 0.4 percent on month and 2.0 percent on year.