Singapore Shares Expected To Open In The Red

(RTTNews) - The Singapore stock market has tracked lower in three straight sessions, stumbling more than 90 points or 3 percent along the way. The Straits Times Index now sits just above the 3,075-point plateau and it's expected to open under pressure again on Monday.

The global forecast for the Asian markets is broadly negative on rising bond yields and their effect on the outlook for interest rates. The European and U.S. markets were down and the Asian markets figure to follow that lead.

The STI finished modestly lower again on Friday as losses from the financials, properties and trusts were mitigated by bargain hunting among the industrials.

For the day, the index shed 22.91 points or 0.74 percent to finish at 3,076.69 after trading between 3,074.07 and 3,100.44.

Among the actives, Ascendas REIT tumbled 2.75 percent, while CapitaLand Integrated Commercial Trust surrendered 2.84 percent, CapitaLand Investment rallied 0.66 percent, City Developments retreated 1.57 percent, DBS Group fell 0.27 percent, Genting Singapore added 0.60 percent, Hongkong Land dropped 1.17 percent, Keppel Corp jumped 1.28 percent, Keppel DC REIT plunged 3.37 percent, Mapletree Pan Asia Commercial Trust tanked 3.01 percent, Mapletree Industrial Trust and Yangzijiang Shipbuilding both slumped 1.38 percent, Mapletree Logistics Trust stumbled 2.63 percent, Oversea-Chinese Banking Corporation lost 0.31 percent, SATS sank 0.80 percent, SembCorp Industries gained 0.44 percent, SingTel skidded 1.27 percent, UOL Group plummeted 4.50 percent, Wilmar International declined 1.99 percent, Yangzijiang Financial surged 3.03 percent and Seatrium Limited, Singapore Technologies Engineering, Thai Beverage, Comfort DelGro and Emperador were unchanged.

The lead from Wall Street is weak as the major averages opened lower and spent the entire day firmly in the red, ending at session lows.

The Dow dropped 286.89 points or 0.86 percent to finish at 33,127.28, while the NASDAQ slumped 202.37 points or 1.53 percent to close at 12,983.81 and the S&P 500 sank 53.84 points or 1.26 percent to end at 4,224.16.

For the week, the NASDAQ dropped 3.2 percent, the S&P 500 dove 2.4 percent and the Dow tumbled 1.6 percent.

The continued weakness on Wall Street came amid ongoing concerns about the recent surge in treasury yields to 16-year highs. Overnight, the yield on the benchmark ten-year note climbed above 5 percent for the first time since July 2007.

The recent advance by yields reflects continued worries about the outlook for interest rates, with the Federal Reserve signaling rates will remain higher for longer than previously anticipated.

Fears the Israel-Hamas war may escalate into a broader regional crisis also contributed to the negative sentiment on Wall Street.

Crude oil prices couldn't hold on to early gains, slumping on demand concerns amid fears the Israel-Hamas war may escalate into a broader regional crisis. West Texas Intermediate for November delivery, which expired Friday, fell $0.62 or 0.7 percent at $88.75 a barrel. The more active December futures slipped $0.29 or 0.3 percent to $88.08 a barrel.

Closer to home, Singapore will release September figures for consumer prices later today. Overall inflation is expected to rise 4.2 percent on year, up from 4.0 percent in August. Core CPI is called higher by an annual 3.1 percent, easing from 3.4 percent in the previous month.