Win Streak May End For Singapore Stock Market

(RTTNews) - The Singapore stock market has finished higher in four straight sessions, collecting almost 160 points or 3.2 percent along the way. The Straits Times Index now sits just above the 5,110-point plateau although it may be stuck in neutral on Wednesday.

The global forecast for the Asian markets is soft, with profit taking on the docket after a few days of solid gains. The European markets were up and the U.S. bourses were mostly lower and the Asian markets are expected to follow the latter lead.

The STI finished modestly higher on Tuesday as gains from the financial shares and industrial issues were capped by weakness from the property sector.

For the day, the index added 39.57 points or 0.78 percent to finish at 5,116.86 after trading between 5,075.34 and 5,122.09.

Among the actives, CapitaLand Ascendas REIT gained 0.40 percent, while City Developments sank 0.81 percent, DBS Group rose 0.38 percent, DFI Retail Group dropped 1.05 percent, Genting Singapore expanded 0.81 percent, Hongkong Land tumbled 2.82 percent, Keppel DC REIT lost 0.44 percent, Keppel Ltd spiked 2.37 percent, Mapletree Industrial Trust shed 0.51 percent, Oversea-Chinese Banking Corporation rallied 2.32 percent, SATS increased 0.50 percent, SembCorp Industries advanced 0.64 percent, Singapore Airlines improved 0.56 percent, Singapore Exchange soared 3.96 percent, Singapore Technologies Engineering added 0.47 percent, SingTel climbed 0.70 percent, Thai Beverage vaulted 1.16 percent, United Overseas Bank collected 1.43 percent, UOL Group fell 0.39 percent, Wilmar International jumped 1.41 percent and Yangzijiang Shipbuilding, CapitaLand Integrated Commercial Trust, CapitaLand Investment, Mapletree Pan Asia Commercial Trust, Mapletree Logistics Trust, Seatrium Limited, Frasers Centrepoint Trust and Frasers Logistics & Commercial Trust were unchanged.

The lead from Wall Street is mixed to lower as the major averages opened higher on Tuesday but only the Dow was able to hold on to its gains as the markets finished mixed.

The Dow rallied 328.64 points or 0.64 percent to finish at a record 51,999.67, while the NASDAQ dropped 307.60 points or 1.15 percent to end at 26,376.34 and the S&P 500 sank 42.94 points or 0.57 percent to close at 7,511.35.

The pullback by the NASDAQ and the S&P 500 reflected profit taking following recent strength in the markets. Optimism about an end to the monthslong U.S.-Iran contributed to the recent recovery, but some traders cashed in on gains as they wait for the peace deal to be finalized.

The mixed performance on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement later today. The Fed is widely expected to leave interest rates unchanged, but the accompanying statement and new Chair Kevin Warsh's post-meeting comments could impact the outlook for rates.

On the inflation front, a report released by the Labor Department showed import prices in the U.S. shot up by much more than expected in the month of May.

Crude oil prices plummeted on Tuesday as transit disruption concerns faded due to the anticipated U.S.-Iran deal. West Texas Intermediate crude for July delivery was down $4.90 or 6.07 percent at $75.85 per barrel.

Closer to home, Singapore will release May figures for non-oil domestic exports later this morning; in April, exports were up 11.0 percent on month and 24.5 percent on year.