The Singapore stock market has experienced a decline in two of the three trading sessions following a five-day winning streak, during which it gained over 90 points or 2.8%. The Straits Times Index (STI) now sits slightly above the 3,470-point mark and is poised for further declines today.
The global outlook for Asian markets is not promising, as technology and semiconductor stocks continue to face selling pressure. European and U.S. markets showed mostly downward trends, and Asian markets are anticipated to follow.
On Thursday, the STI closed slightly lower, affected by losses in financial shares, property stocks, and industrial sectors. The index dropped 18.41 points, or 0.53%, ending the day at 3,471.16, with trading ranges between 3,463.64 and 3,477.64.
Among individual stocks, CapitaLand Investment saw a decline of 1.09%, City Developments fell by 0.55%, while DBS Group and Keppel DC REIT both slipped by 1.02%. Other notable movements included Emperador falling 1.18%, Genting Singapore and Hongkong Land both losing 0.58%, Keppel Ltd shedding 0.60%, and Oversea-Chinese Banking Corporation sinking 0.66%. On the positive side, Mapletree Pan Asia Commercial Trust improved by 0.76%, Singapore Technologies Engineering and Frasers Centrepoint Trust both increased by 0.46%, SingTel surged by 1.32%, and Thai Beverage rose by 1.01%. However, Wilmar International fell 0.95%, Yangzijiang Financial tumbled 1.45%, Yangzijiang Shipbuilding plummeted 2.89%, while Mapletree Industrial Trust, Mapletree Logistics Trust, CapitaLand Integrated Commercial Trust, Comfort DelGro, and Seatrium Limited remained unchanged.
Wall Street provided a negative lead, with major averages opening slightly higher on Thursday but quickly turning downward, remaining in the red throughout the session. The Dow Jones Industrial Average plunged 533.06 points, or 1.29%, closing at 40,665.02. The NASDAQ Composite dropped 125.70 points, or 0.70%, to 17,871.22, and the S&P 500 fell 43.68 points, or 0.78%, ending at 5,544.59.
The weakness on Wall Street was partially due to concerns about the near-term market outlook following a tech sell-off on Wednesday. This sell-off was triggered by news that the Biden administration is considering stricter trade rules on companies in its chip crackdown on China.
In U.S. economic news, the Labor Department reported a higher-than-expected increase in first-time claims for unemployment benefits last week. Additionally, the Federal Reserve Bank of Philadelphia indicated broader regional manufacturing growth in July, while the Conference Board observed a modest decline in its leading U.S. economic indicators for June.
Oil futures saw a slight decline on Thursday amid ongoing concerns about demand from China and a recovering U.S. dollar weighing on prices. West Texas Intermediate Crude oil futures for August settled at $82.82 a barrel, down $0.03.
