Additional Support Predicted For Singapore Stock Market

(RTTNews) - The Singapore stock market bounced higher again on Wednesday, one session after snapping the five-day winning streak in which it had climbed more than 70 points or 2.2 percent. The Straits Times Index now rests just above the 3,285-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is upbeat thanks to easing inflation concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The STI finished modestly higher on Wednesday following gains from the industrials and mixed performances from the financials and properties.

For the day, the index gained 15.35 points or 0.47 percent to finish at 3,286.33 after trading between 3,269.24 and 3,289.47. Volume was 1.38 billion shares worth 1.36 billion Singapore dollars. There were 246 gainers and 244 decliners.

Among the actives, Ascendas REIT eased 0.04 percent, while CapitaLand Investment soared 2.24 percent, City Developments added 0.61 percent, DBS Group rallied 1.43 percent, Hongkong Land tumbled 1.17 percent, Keppel Corp rose 0.43 percent, Mapletree Pan Asia Commercial Trust lost 0.52 percent, Mapletree Industrial Trust dropped 0.74 percent, Mapletree Logistics Trust sank 0.56 percent, Oversea-Chinese Banking Corporation collected 0.73 percent, SATS gained 0.49 percent, SembCorp Industries climbed 1.26 percent, Singapore Technologies Engineering was up 0.25 percent, SingTel advanced 1.15 percent, Thai Beverage surged 2.31 percent, United Overseas Bank fell 0.18 percent, Wilmar International and DFI Retail both jumped 1.47 percent, Yangzijiang Shipbuilding spiked 1.60 percent and Genting Singapore, Yangzijiang Financial, CapitaLand Integrated Commercial Trust, Singapore Exchange, Comfort DelGro and Keppel DC REIT were unchanged.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Wednesday and stayed that way throughout the day, ending at three-month closing highs.

The Dow spiked 535.10 points or 1.63 percent to finish at 33,309.51, while the NASDAQ surged 360.88 points or 2.89 percent to end at 12,854.80 and the S&P 500 jumped 87.77 points or 2.13 percent to close at 4,210.24.

The rally on Wall Street came after the Labor Department released a report showing U.S. consumer prices unexpectedly came in flat in the month of July.

The tamer than expected inflation data has led to speculation that the Federal Reserve may slow the pace of interest rate hikes at its September meeting.

Crude oil prices climbed higher on Wednesday, lifted by data showing a bigger-than-expected drop in gasoline inventories in the U.S. last week. A weak dollar and increased demand for gasoline also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures ended higher by $1.43 or 1.6 percent at $91.93 a barrel.

Closer to home, Singapore will release Q2 numbers for gross domestic product and current account. GDP is called flat on quarter and up 4.8 percent on year after rising 0.7 percent on quarter and 3.7 percent on year in the previous three months. The current account surplus was $28.86 billion in the previous three months.