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Singapore Likely To Remain Rangebound On Wednesday

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The Singapore stock market ticked higher again on Tuesday, one session after ending the two-day winning streak in which it had gathered almost 15 points or 0.5 percent. The Straits Times Index now sits just beneath the 2,850-point plateau and it's expected to remain in that neighborhood again on Wednesday.

The global forecast for the Asian markets is soft as traders take a wait-and-see attitude regarding stimulus and coronavirus vaccines. The European markets were mixed and the U.S. bourses slightly lower and the Asian markets figure to split the difference.

The STI finished modestly higher on Tuesday following mixed performances from the financial shares, property stocks and industrial issues.

For the day, the index slipped 8.00 points or 0.28 percent to finish at 2,848.14 after trading between 2,840.38 and 2,852.65. Volume was 1.56 billion shares worth 630 million Singapore dollars. There were 265 gainers and 175 decliners.

Among the actives, Singapore Press Holdings surged 1.82 percent, SembCorp Industries soared 1.76 percent, CapitaLand Integrated Commercial Trust spiked 1.41 percent, SATS accelerated 1.26 percent, CapitaLand rallied 1.23 percent, Yangzijiang Shipbuilding tumbled 1.06 percent, Mapletree Commercial Trust jumped 0.96 percent, Dairy Farm International climbed 0.72 percent, Thai Beverage gathered 0.69 percent, Ascendas REIT perked 0.68 percent, Genting Singapore advanced 0.59 percent, Singapore Technologies Engineering skidded 0.52 percent, Singapore Airlines sank 0.47 percent, SingTel fell 0.43 percent, DBS Group collected 0.28 percent, Wilmar International and Singapore Exchange both added 0.22 percent, Keppel Corp rose 0.19 percent, United Overseas Bank dipped 0.18 percent, City Developments eased 0.12 percent and Mapletree Logistics Trust, Oversea-Chinese Banking Corporation, CapitaLand Commercial Trust and Comfort DelGro were unchanged.

The lead from Wall Street is mildly negative as stocks failed to sustain an initial move to the upside and moved modestly lower over the course of the trading session on Tuesday.

The Dow shed 68.30 points or 0.22 percent to finish at 30,335.67, while the NASDAQ sank 49.20 points or 0.38 percent to end at 12,850.22 and the S&P 500 fell 8.32 points or 0.22 percent to close at 3,727.04.

Stocks initially benefited from window dressing, as some fund managers looked to further boost their portfolios going into the end of the year. The initial advance lifted the major averages to new record intraday highs, although buying interest waned shortly after the start of trading.

Traders also kept an eye on developments in Washington after President Donald Trump signed a coronavirus relief and government spending bill over the weekend.

Trump called for the direct payments included in the bill to be increased to $2,000 from $600, and the House voted Monday to approve a measure increasing the size of the stimulus checks. However, Senate Majority Leader Mitch McConnell, R-Ken., blocked an effort by Senate Minority Leader Chuck Schumer, D-N.Y., to unanimously approve the House bill.

Crude oil prices moved higher on Tuesday amid hopes energy demand will pick up if U.S. policymakers decide to provide additional stimulus to boost economic growth. West Texas Intermediate Crude oil futures for February ended higher by $0.38 or 0.8 percent at $48.00 a barrel.

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