The Singapore stock market experienced a setback on Friday, ending a brief two-day rally that saw a gain of nearly 20 points or 0.6 percent. The Straits Times Index is now positioned slightly above the 3,590 mark and is expected to face further downward pressure as trading resumes on Monday.
Globally, the forecast for Asian markets remains uncertain due in part to concerns about the future trajectory of interest rates. Both European and U.S. markets ended with minimal movement, suggesting that Asian markets might show a similar trend.
On Friday, the STI closed the session with modest losses, primarily due to declines in financial, trust, and property stocks, while industrial stocks showed mixed performance. The index dropped 11.54 points or 0.32 percent, closing at 3,593.41, within a trading range of 3,582.36 to 3,604.54.
Key performers in the market included CapitaLand Integrated Commercial Trust, which saw a decrease of 0.98 percent, and CapitaLand Investment, which declined by 1.03 percent. City Developments fell by 0.19 percent, DBS Group by 0.38 percent, and Genting Singapore by 0.60 percent. Hongkong Land and Oversea-Chinese Banking Corporation also saw declines of 0.51 percent and 0.52 percent, respectively. On the upside, Keppel DC REIT increased by 0.85 percent and Keppel Ltd rose by 0.62 percent. Notably, SATS surged by an impressive 7.22 percent. However, Mapletree Pan Asia Commercial Trust and SembCorp Industries saw significant drops of 4.96 percent and 1.13 percent, respectively.
Wall Street's lead remains ambiguous, with major indices starting Friday's session slightly higher, only to drop later and conclude the day with mixed results. The Dow Jones Industrial Average fell by 259.96 points or 0.61 percent to end at 42,114.40. The NASDAQ, however, gained 103.12 points or 0.56 percent, closing at 18,518.61, while the S&P 500 experienced a minor decline, easing 1.74 points or 0.03 percent to finish at 5,808.12.
Over the week, the Dow receded by 2.7 percent and the S&P 500 fell by 1.0 percent, whereas the NASDAQ inched up by 0.2 percent. Initial trading was buoyed by optimism regarding the economic outlook, following an unexpected improvement in consumer sentiment for October, as reported by the University of Michigan. However, buying momentum subsided during the session as treasury yields rebounded from Thursday’s retreat, amid concerns that the Federal Reserve may decelerate its approach to cutting interest rates.
Meanwhile, oil prices saw a sharp rise on Friday due to apprehensions about geopolitical tensions and potential production adjustments from OPEC. West Texas Intermediate Crude oil futures for December rose by $1.69, or 2.3 percent, settling at $71.78 per barrel, marking a 3.8 percent gain over the week.
