Rebound Anticipated For Singapore Stock Market

(RTTNews) - The Singapore stock market on Thursday ended the two-day winning streak in which it had jumped more than 80 points or 1.6 percent. The Straits Times Index now rests just beneath the 5,050-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is broadly positive, thanks to sinking crude oil prices and support from the technology sectors. The European and U.S. markets were sharply higher on Wednesday and the Asian bourses are expected to follow that lead.

The STI finished modestly lower on Wednesday following losses from the financial shares and property stocks, while the industrials were mixed.

For the day, the index dropped 27.43 points or 0.54 percent to finish at 5,044.91 after trading between 5,024.99 and 5,069.45.

Among the actives, CapitaLand Ascendas REIT added 0.40 percent, while CapitaLand Integrated Commercial Trust skidded 0.87 percent, CapitaLand Investment declined 1.12 percent, City Developments tanked 1.82 percent, DBS Group retreated 1.13 percent, DFI Retail Group rose 0.24 percent, Genting Singapore advanced 0.85 percent, Hongkong Land fell 0.38 percent, Keppel DC REIT tumbled 1.30 percent, Keppel Ltd and Singapore Exchange both expanded 0.88 percent, Mapletree Industrial Trust increased 0.52 percent, Mapletree Logistics Trust climbed 0.86 percent, Oversea-Chinese Banking Corporation dropped 0.81 percent, Seatrium Limited slumped 0.89 percent, SembCorp Industries vaulted 0.98 percent, Singapore Airlines and SATS both sank 0.61 percent, Singapore Technologies Engineering gained 0.36 percent, SingTel improved 0.80 percent, Thai Beverage contracted 1.08 percent, United Overseas Bank lost 0.42 percent, UOL Group shed 0.59 percent, Wilmar International rallied 2.19 percent, Yangzijiang Shipbuilding plunged 3.30 percent and Mapletree Pan Asia Commercial Trust was unchanged.

The lead from Wall Street is strong as the major averages opened slightly higher on Wednesday but accelerated throughout the day, ending at session highs.

The Dow spiked 645.47 points or 1.31 percent to finish at 50,009.35, while the NASDAQ jumped 399.65 points or 1.54 percent to end at 26,270.36 and the S&P 500 climbed79.36 points or 7,432.97.

The rally on Wall Street came on a steep drop by treasuries yields, which pulled back sharply, with the yield on the benchmark ten-year note plunging from its highest levels in well over a year.

The sharp drop in crude oil prices also contributed to the rise on Wall Street, thanks to increasing diplomatic measures to secure an agreement to end their hostilities between the United States and Iran. West Texas Intermediate crude for July delivery was down $5.89 or 5.66 percent at $98.26 per barrel.

Optimism about earnings news from Nvidia (NVDA) may also have generated buying interest, as the chipmaker was due to report its first quarter results after the close of trading.

In fact, Nvidia decisively beat expectations on both the top and bottom lines, likely giving the Asian markets a solid boost.