Singapore Bourse Called Rangebound Again On Thursday

(RTTNews) - The Singapore stock market has climbed higher in two straight sessions, rising more than 45 points or 1.2 percent along the way. The Straits Times Index now sits just above the 3,925-point plateau, and it's expected to remain in that neighborhood again on Thursday.

The global forecast for the Asian markets suggests little movement as geopolitical concerns appear to have taken a breather. The European markets were down and the U.S. bourses were mixed and flat and the Asian markets figure to split the difference.

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

For the day, the index improved 21.68 points or 0.56 percent to finish at 3,925.98 after trading between 3,907.79 and 3,932.25,

Among the actives, CapitaLand Ascendas REIT gained 0.38 percent, while CapitaLand Integrated Commercial Trust increased 0.47 percent, CapitaLand Investment strengthened 0.79 percent, City Developments added 0.39 percent, Comfort DelGro sank 0.70 percent, DBS Group advanced 0.68 percent, DFI Retail Group surged 1.90 percent, Genting Singapore climbed 0.71 percent, Hongkong Land soared 1.83 percent, Keppel DC REIT jumped 0.88 percent, Mapletree Industrial Trust improved 0.51 percent, Oversea-Chinese Banking Corporation collected 0.19 percent, SATS rose 0.33 percent, Seatrium Limited lost 0.49 percent, SembCorp Industries dipped 0.15 percent, Singapore Technologies Engineering spiked 1.53 percent, SingTel dropped 0.78 percent, United Overseas Bank rallied 1.05 percent, Wilmar International shed 0.69 percent, Yangzijiang Shipbuilding stumbled 1.35 percent and Keppel Ltd, Mapletree Pan Asia Commercial Trust, Thai Beverage, Yangzijiang Financial, Mapletree Logistics Trust and Frasers Logistics & Commercial Trust were unchanged.

The lead from Wall Street offers little guidance as the major averages opened mixed and spent the whole day hugging the line before ending little changed.

The Dow dropped 106.59 points or 0.25 percent to finish at 42,982.43, while the NASDAQ added 61.02 points or 0.31 percent to close at 19,973.55 and the S&P 500 eased 0.02 points or 0.00 percent to end at 6,092.16.

The initial strength on Wall Street reflected recent upward momentum, which saw stocks move sharply higher over the two previous sessions.

Buying interest waned shortly after the start of trading, however, as traders continue to monitor developments in the Middle East following yesterday's news of a ceasefire between Israel and Iran. The subsequent pullback likely was profit taking after the major averages reached their highest intraday levels in four months.

In U.S. economic news, a report released by the Commerce Department showed a substantial pullback by new home sales in the U.S. in May.

Crude oil prices moved higher on Wednesday as an EIA report indicated a draw in crude oil inventories and a surge in U.S. gasoline demand to a three-and-a-half-year high. West Texas Intermediate crude oil for August delivery closed up by $0.55 to settle at $64.92 per barrel.

Closer to home, Singapore will on Thursday release May figures for industrial production later today. Output is expected to sink 2.5 percent on month and rise 2.6 percent on year after climbing 5.3 percent on month and 5.9 percent on year in April.