Singapore Shares May Test Resistance At 3,900 Points

(RTTNews) - Ahead of Monday's holiday for Wesak Day, the Singapore stock market had bounced higher again, one day after ending the five-day winning streak in which it had risen more than 60 points or 1.7 percent. The Straits Times Index now sits just above the 3,875-point plateau and it's expected to open to the upside again on Tuesday.

The global forecast for the Asian markets is upbeat on optimism over easing tariff 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 Friday following mixed performances from the financial shares, property stocks and industrials.

For the day, the index improved 27.94 points or 0.73 percent to finish at 3,876.16 after trading between 3,854.72 and 3,879.56.

Among the actives, CapitaLand Ascendas REIT gathered 0.38 percent, while CapitaLand Integrated Commercial Trust gained 0.48 percent, CapitaLand Investment increased 0.80 percent, City Developments rose 0.41 percent, Comfort DelGro shed 0.65 percent, DBS Group soared 1.44 percent, Genting Singapore accelerated 1.37 percent, Hongkong Land fell 0.40 percent, Keppel DC REIT spiked 1.39 percent, Keppel Ltd perked 0.15 percent, Mapletree Pan Asia Commercial Trust improved 0.84 percent, Oversea-Chinese Banking Corporation collected 0.43 percent, Seatrium Limited climbed 1.00 percent, SembCorp Industries jumped 1.23 percent, Singapore Technologies Engineering surged 1,60 percent, SingTel rallied 1.04 percent, Thai Beverage advanced 0.98 percent, Venture Corporation dipped 0.27 percent, Wilmar International added 0.66 percent, Yangzijiang Financial sank 0.71 percent, Yangzijiang Shipbuilding lost 0.47 percent and Mapletree Industrial Trust, Mapletree Logistics Trust, SATS and Frasers Logistics & Commercial Trust were unchanged.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Monday and remained well in the green throughout the trading day.

The Dow surged 1,160.72 points or 2.81 percent to finish at 42,410.10, while the NASDAQ soared 779.43 points or 4.35 percent to close at 18,708.34 and the S&P 500 rallied 184.28 points or 3.26 percent to end at 5,844.19.

The rally on Wall Street came following news of a U.S.-China trade deal that drastically reduces the massive tariffs on each other's goods.

The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff. The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.

The White House said the 34 percent reciprocal tariffs on U.S. and Chinese goods will be suspended for 90 days beginning May 14. Both nations also agreed to establish a mechanism to continue important discussions about trade and economics, the White House said.

Crude oil showed another strong move to the upside on Monday, riding optimism about the outlook for demand after the U.S. and China reached their trade deal. West Texas Intermediate crude for June delivery jumped $0.93 or 1.5 percent to $61.95 a barrel.