Singapore Bourse May Again Test Resistance At 5,000 Points

(RTTNews) - The Singapore stock market has alternated between positive and negative finishes through the last eight trading days since the end of the two-day slide in which it had slipped more than a dozen points or 0.25 percent. The Straits Times Index now rests just above the 4,980-point plateau and it's expected to open in the green on Tuesday. The global forecast for the Asian markets is cautiously optimistic, with energy and technology stocks expected to provide support. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead. The STI finished slightly lower on Monday as losses from the property stocks and industrial issues were tempered by support from the financial sector. For the day, the index dipped 5.24 points or 0.11 percent to finish at 4,984.17 after trading between 4,965.48 and 4,984.17. Among the actives, CapitaLand Integrated Commercial Trust gained 0.43 percent, while City Developments sank 0.48 percent, DBS Group collected 0.30 percent, DFI Retail Group shed 0.47 percent, Genting Singapore skidded 0.73 percent, Hongkong Land tanked 2.10 percent, Keppel Ltd lost 0.41 percent, Mapletree Industrial Trust and Venture Corporation both improved 0.50 percent, Mapletree Logistics Trust advanced 0.84 percent, Oversea-Chinese Banking Corporation increased 0.49 percent, SATS stumbled 1.65 percent, Seatrium Limited contracted 0.81 percent, SembCorp Industries climbed 1.02 percent, Singapore Airlines declined 0.90 percent, Singapore Exchange tumbled 1.56 percent, Singapore Technologies Engineering slumped 0.79 percent, SingTel fell 0.20 percent, United Overseas Bank perked 0.08 percent, UOL Group dropped 0.50 percent, Yangzijiang Shipbuilding retreated 1.49 percent and Wilmar International, CapitaLand Ascendas REIT, CapitaLand Investment, Thai Beverage, Mapletree Pan Asia Commercial Trust, Keppel DC REIT and Frasers Logistics & Commercial Trust were unchanged.

The lead from Wall Street is positive as the major averages opened under water on Monday but quickly trended to the upside and into the green, finishing at daily highs.

The Dow climbed 301.68 points or 063 percent to finish at 48,218.25, while the NASDAQ jumped 280.84 points or 1.23 percent to close at 23,183.74 and the S&P 500 rallied 69.35 points or 1.02 percent to end at 6,886.24.

The strength that emerged on Wall Street came as traders kept an eye on developments in the Middle East after weekend talks between the U.S. and Iran failed to produce an agreement.

Crude oil prices surged on Monday after U.S. President Donald Trump imposed a blockade on ships transiting to and from Iran via the Strait of Hormuz. West Texas Intermediate crude for May delivery was up $2.67 or 2.76 percent at $99.24 per barrel. While the news contributed to a significant increase by the price of crude oil, traders seem optimistic Trump will back down once again and avoid a return to war.

Traders were also looking ahead to the start of earnings season, with companies largely expected to report strong financial results despite the Middle East conflict.