Continued Consolidation Called For Singapore Shares

(RTTNews) - The Singapore stock market has moved lower in two straight sessions, sinking more than 15 points or 0.4 percent along the way. The Straits Times Index now sits just beneath the 3,920-point plateau and it may take further damage on Thursday.

The global forecast for the overbought Asian markets is weak, with profit taking expected. The European and U.S. markets were mostly lower, and the Asian bourses are expected to follow that lead.

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

For the day, the index shed 14.75 points or 0.37 percent to finish at 3,919.05 after trading between 3,907.91 and 3,933.52.

Among the actives, CapitaLand Ascendas REIT advanced 0.78 percent, while CapitaLand Investment and SingTel both improved 0.77 percent, City Developments perked 0.19 percent, Comfort DelGro added 0.70 percent, DBS Group dropped 0.62 percent, DFI Retail Group slumped 1.09 percent, Hongkong Land shed 0.36 percent, Keppel DC REIT jumped 1.33 percent, Keppel Ltd sank 0.56 percent, Mapletree Industrial Trust gained 0.52 percent, Mapletree Logistics Trust climbed 0.90 percent, Oversea-Chinese Banking Corporation skidded 0.68 percent, SATS rose 0.32 percent, SembCorp Industries retreated 1.17 percent, Singapore Technologies Engineering stumbled 1.91 percent, UOL Group surrendered 1.29 percent, Venture Corporation rallied 1.25 percent, Wilmar International lost 0.33 percent, Yangzijiang Financial collected 0.69 percent, Yangzijiang Shipbuilding tanked 1.30 percent and Genting Singapore, Thai Beverage, Mapletree Pan Asia Commercial Trust, Seatrium Limited and CapitaLand Integrated Commercial Trust were unchanged.

The lead from Wall Street is soft as the major averages spent most of the day in positive territory before a late swoon sent them all into the red.

The Dow dipped 1.10 points or 0.00 percent to finish at 42,865.77, while the NASDAQ dropped 99.11 points or 0.50 percent to close at 19,615.88 and the S&P 500 sank 16.57 points or 0.27 percent to end at 6,022.24.

The downturn on Wall Street reflected profit taking after the early advance lifted the major averages to their best intraday levels in over three months.

The early strength in the markets followed the release of a closely watched Labor Department report showing U.S. consumer prices increased by slightly less than expected in the month of May.

Buying interest was also generated after U.S. and Chinese officials announced an agreement in principle on a framework to ease trade disputes between the two economic superpowers.

Crude oil prices surged on Wednesday amid the trade talks between the U.S. and China, as well as a fresh stand-off between the U.S. and Iran over a nuclear deal. West Texas Intermediate crude for July delivery closed up by $3.32 or 5.11 percent to settle at $68.30 per barrel.