Singapore Stock Market Tipped To Erase Wednesday's Losses

(RTTNews) - The Singapore stock market on Wednesday ended the two-day winning streak in which it had gathered almost 20 points or 0.6 percent. The Straits Times Index now rests just above the 3,210-point plateau, although it's expected to rebound again on Thursday.

The global forecast for the Asian markets is upbeat on bargain hunting and easing concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets figure to split the difference.

The STI finished modestly lower on Wednesday following losses from the industrials and property stocks, while the financials came in mixed.

For the day, the index slipped 13.35 points or 0.41 percent to finish at 3,210.83 after trading between 3,198.39 and 3,217.51. Volume was 1.5 billion shares worth 1.2 billion Singapore dollars. There were 297 decliners and 195 gainers.

Among the actives, CapitaLand Integrated Commercial Trust advanced 0.97 percent, while CapitaLand Investment plunged 1.63 percent, City Developments lost 0.36 percent, Comfort DelGro shed 0.72 percent, DBS Group skidded 0.80 percent, Genting Singapore declined 1.30 percent, Hongkong Land fell 0.31 percent, Keppel Corp eased 0.13 percent, Mapletree Industrial Trust gained 0.39 percent, Mapletree Logistics Trust retreated 1.17 percent, Oversea-Chinese Banking Corporation rose 0.17 percent, SATS dropped 0.74 percent, SembCorp Industries tumbled 1.44 percent, Singapore Technologies Engineering slumped 1.06 percent, SingTel added 0.75 percent, Thai Beverage weakened 0.79 percent, United Overseas Bank sank 0.77 percent, Wilmar International tanked 1.49 percent, Yangzijiang Financial surrendered 1.32 percent, Yangzijiang Shipbuilding plummeted 1.64 percent and Ascendas REIT, Singapore Exchange, Mapletree Pan Asia Commercial Trust and Frasers Logistics were unchanged.

The lead from Wall Street is broadly positive as the major averages opened slightly higher on Wednesday but accelerated as the day progressed, ending near session highs.

The Dow surged 435.98 points or 1.40 percent to finish at 31,581.28, while the NASDAQ rallied 246.99 points or 2.14 percent to end at 11,791.90 and the S&P 500 jumped 71.68 points or 1.83 percent to close at 3,979.87.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following recent weakness, which dragged the major averages down to their lowest levels in over a month; traders may now feel that interest rate concerns have been priced into the markets.

The rebound also came amid a pullback by treasury yields, with the yield on the benchmark ten-year note receding after reaching a nearly three-month high on Tuesday.

Stocks saw further upside following the release of the Federal Reserve's Beige Book, which said economic activity in the U.S. has been essentially unchanged since early July. Also, the Commerce Department said the U.S. trade deficit narrowed significantly in July.

Crude oil prices fell sharply on Wednesday on concerns about the outlook for energy demand amid rising fears of a global recession. West Texas Intermediate Crude oil futures for October ended lower by $4.94 or 5.7 percent at $81.94 a barrel, the lowest settlement since January 11.