Over the last three trading days, the Singapore stock market, following a two-day loss in which it fell by more than 15 points or 0.4 percent, has seen an upward trend. The Straits Times Index (STI) is now poised just below the 3,160-point plateau, with minimal movement expected on Monday.
Looking at the global forecasts for Asian markets, the outlook is unclear due to upcoming earnings reports and the announcement of the Federal Open Market Committee (FOMC) rate decision. Though European markets have been performing positively, US markets have yielded mixed results, which is likely to influence the direction of Asian markets.
On Friday, the STI ended on a modest high, thanks to gains in the financial sector and varying performances from property and industrial sectors. The index rose by 11.89 points or 0.38 percent, ending at 3,159.53 after fluctuating between 3,148.67 and 3,179.24.
Among the active stocks, Ascendas REIT dropped by 0.69 percent, City Developments slipped by 0.16 percent, DBS Group grew by 0.56 percent, Genting Singapore jumped 3.59 percent, and Keppel DC REIT fell by 2.22 percent. Other notable movements included Keppel Ltd declining by 0.29 percent, Mapletree Industrial Trust gaining 0.41 percent and Oversea-Chinese Banking Corporation increasing 0.62 percent.
The US Wall Street averages offer limited insight as they opened lower on Friday, rallied in the middle of the day before dropping again later in the session- ending the day mixed.
The Dow increased by 60.33 points or 0.16 percent to end the day at 38,109.43, while the NASDAQ fell 55.14 points or 0.36 percent to 15,455.36. The S&P 500 declined slightly by 3.19 points or 0.07 percent to conclude at 4,890.97. Over the week, the S&P 500 rose by 1.1 percent, the NASDAQ by 0.9 percent and the Dow by 0.7 percent.
Investors weighed disappointing Intel earnings against less severe than anticipated consumer price inflation data, resulting in fluctuation on Wall Street.
Furthermore, traders may have been cautious about major moves pending the Federal Reserve’s monetary policy update this week. While no changes to interest rates are expected, investors will be watching for indications regarding impending rate cuts.
On a positive note, crude oil futures ended higher on Friday, reflecting optimism about demand outlook due to encouraging US economic data and fresh stimulus from the Chinese central bank. West Texas Intermediate Crude oil futures for March increased by $0.65 or 0.84 percent to settle at $78.01 a barrel. WTI crude futures saw a leap of 6 percent over the week.
