Continued Consolidation Requires Singapore Stock Market

The Singapore stock market ended its two-day winning streak on Friday in which it had gained nearly 20 points, or 0.6 percent. The Straits Times Index is now just above the 3,245-point plateau and could take even more damage Monday.

The global forecast for the Asian markets is mixed to ease on concerns about an economic slowdown and a rise in interest rates. The European markets were mixed and the US markets were sharply lower and the Asian markets share the difference.

The STI ended slightly lower on Friday after losses in financials and real estate stocks and a mixed picture from the industry.

For the day, the index fell 26.97 points or 0.82 percent to end at 3,246.51 after trading between 3,240.05 and 3,271.95. The volume was 1.3 billion shares worth 989 million Singapore dollars. There were 264 fallers and 214 risers.

Among actives, Ascendas REIT fell 0.67 percent, while CapitaLand Integrated Commercial Trust lost 0.94 percent, CapitaLand Investment stumbled 0.77 percent, City Developments fell 1.42 percent, Comfort DelGro and Singapore Technologies Engineering both lost 0.51 percent DBS Group gave in 1.23 percent, Genting Singapore fell 0.62 percent, Keppel Corp slumped 1.41 percent, Mapletree Pan Asia Commercial Trust climbed 1.04 percent, Mapletree Logistics Trust fell 0.56 percent, Oversea-Chinese Banking Corporation fell 1.45 percent, SATS fell 0.96 percent, SembCorp Industries lost 0.31 percent, Singapore Exchange rose 0.10 percent, SingTel plunged 1.48 percent, Thai Beverage fell 0.76 percent, United Overseas Bank weakened 0 .74 percent, Wilmar International added 0.24 percent, Yangzijiang Shipbuilding rose 1.06 percent and Mapletree Industrial Trust, Hong Kong Land and Yangzijiang Financial were unchanged.

Wall Street’s lead is generally negative as the big averages opened sharply lower on Friday and remained deep in the red throughout the session.

The Dow fell 292.26 points or 0.86 percent to end at 33,706.74, while the NASDAQ plunged 260.08 points or 2.01 percent to close at 12,705.21 and the S&P 500 fell 55.26 points. or 1.29 percent to end at 4,228.48. For the week, the NASDAQ plunged 2.6 percent, the S&P fell 1.2 percent and the Dow fell 0.2 percent.

The weakness on Wall Street came as traders tried to take advantage of recent strength in the markets, which lifted key averages well from their June lows to their best levels in nearly four months.

Traders may also have taken money out of stocks ahead of this week’s economic symposium in Jackson Hole, Wyoming. Comments by Federal Reserve officials at the annual symposium are likely to draw attention as traders look for additional clues about the pace of future rate hikes.

Oil futures were slightly higher on Friday, but posted a weekly loss on concerns about the outlook for energy demand amid fears of a possible recession in Europe. West Texas Intermediate crude futures for September were up $0.27 or 0.3 percent to $90.77 a barrel.

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