Singapore Stock Market May Test Resistance At 5,000 Points

(RTTNews) - The Singapore stock market bounced higher again on Monday, one day after ending the three-day winning streak in which it had climbed more than 80 points or 1.6 percent. The Straits Times Index now sits just above the 4,960-point plateau and it's expected to extend its gains again on Tuesday. The global forecast for the Asian markets is cautiously optimistic amidst an extended rebound among technology companies and ahead of key U.S. data later this week. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The STI finished modestly higher on Monday following gains from the financial shares, property stocks and industrial issues. For the day, the index added 26.42 points or 0.54 percent to finish at 4,960.83 after trading between 4,929.07 and 4,981.97. Among the actives, CapitaLand Ascendas REIT and Oversea-Chinese Banking Corporation both rose 0.71 percent, while CapitaLand Integrated Commercial Trust gained 0.82 percent, CapitaLand Investment added 1.28 percent, City Developments strengthened 2.09 percent, DBS Group tumbled 1.87 percent, DFI Retail Group rallied 2.38 percent, Genting Singapore gathered 0.67 percent, Hongkong Land jumped 2.32 percent, Keppel DC REIT was up 0.45 percent, Keppel Ltd surged 3.95 percent, Mapletree Pan Asia Commercial Trust increased 1.46 percent, Mapletree Industrial Trust rose 0.99 percent, Mapletree Logistics Trust climbed 1.53 percent, SATS spiked 2.64 percent, Seatrium Limited improved 1.46 percent, SembCorp Industries added 0.83 percent, Singapore Airlines advanced 1.49 percent, Singapore Exchange soared 3.02 percent, Singapore Technologies Engineering skyrocketed 4.12 percent, SingTel gained 1.27 percent, Thai Beverage expanded 2.15 percent, United Overseas Bank collected 0.52 percent, UOL Group vaulted 2.18 percent, Wilmar International perked 0.29 percent, Yangzijiang Shipbuilding accelerated 2.53 percent nd Frasers Logistics & Commercial Trust and Frasers Centrepoint Trust were unchanged. The lead from Wall Street suggests mild upside as the major averages opened lower on Monday but eventually moved up into the green to finish with modest gains.

The Dow rose 18.98 points or 0.04 percent to finish at 50,134.65, while the NASDAQ jumped 217.80 points or 0.95 percent to close at 23,249.02 and the S&P 500 added 34.13 points or 0.49 percent to end at 6,966.43.

The strength that has emerged on Wall Street reflected an extended rebound by tech stocks, which helped the strong upward move seen last Friday.

Software giant Oracle (ORCL) has helped lead the sector higher, spiking by 9.3 percent after D.A. Davidson upgraded its rating on the company's stock to Buy from Neutral.

The choppy trading came as traders were reluctant to make significant moves ahead of the release of several key U.S. economic reports in the coming days. The Labor Department's closely watched monthly jobs report, which was delayed due to the brief government shutdown last week, is likely to be in the spotlight.

Gold prices moved sharply higher on Monday, extending last week's gains. Gold for February delivery surged $99.70 or 2 percent to $5,050.90 an ounce. The continued advance by the price of gold came amid weakness in the value of the U.S. dollar, with the U.S. dollar index sliding 0.7 percent. Closer to home, Singapore will see Q4 data for gross domestic product later this morning; in the three months prior, GDP expanded 5.7 percent on year.