In recent trading sessions, the Singapore stock market has experienced a decline, falling over 15 points, or 0.4%, across two days. The Straits Times Index (STI) is now hovering just below the 3,800-point mark, with expectations for market support on Wednesday.
The global outlook for Asian markets is favorable, driven by renewed optimism about interest rate prospects. This positive sentiment follows gains in European and U.S. markets, which are anticipated to influence Asian exchanges similarly.
On Tuesday, the STI closed slightly lower, primarily due to downslides in financial and property stocks, with mixed performances in trusts and industrial sectors. Specifically, the index dropped 12.60 points, or 0.33%, concluding at 3,795.37, within a trading range of 3,779.07 and 3,806.77.
In terms of stock performance, CapitaLand Integrated Commercial Trust decreased by 0.51%, while CapitaLand Investment rose 0.40%. City Developments and Mapletree Logistics Trust each fell by 0.78%. Comfort DelGro slipped by 1.42%, and DBS Group dipped 0.21%. Hongkong Land plummeted 2.10%, whereas Keppel DC REIT edged up 0.45%. Mapletree Pan Asia Commercial Trust dropped 0.83%, and Oversea-Chinese Banking Corporation decreased by 0.64%. Conversely, SATS surged 1.40%, Seatrium Limited gained 0.90%, and Singapore Technologies Engineering advanced 0.85%. In contrast, SingTel declined 0.63%, Wilmar International improved 0.65%, and Yangzijiang Financial fell 1.19%. Companies such as Yangzijiang Shipbuilding, Emperador, Genting Singapore, Thai Beverage, Keppel Ltd, and Mapletree Industrial Trust maintained their previous positions.
The positive momentum from Wall Street was evident, with major indices opening higher on Tuesday and sustaining this trend throughout the trading day. The Dow jumped 537.98 points, or 1.24%, to close at 44,025.81. Meanwhile, the NASDAQ climbed 126.58 points, or 0.64%, reaching 19,756.78, and the S&P 500 added 52.58 points, or 0.88%, concluding at 6,049.24.
The strength in U.S. stocks is attributed to investor evaluations of potential impacts from the Trump administration's economic strategies and proposed tariffs, alongside optimism surrounding potential interest rate cuts by the Federal Reserve within the year and a decline in Treasury yields. The recent dip in yields is linked to U.S. inflation data released over recent days, sparking hopeful forecasts for interest rate trends.
Oil prices saw a downtrend on Tuesday, influenced by Trump's announced intentions to increase oil and gas output in the United States. Consequently, February futures for West Texas Intermediate Crude oil settled down by $1.99, or 2.56%, at $75.89 per barrel.
