The Singapore stock market has seen positive momentum over the past two sessions, accumulating nearly 15 points, equivalent to a 0.5% increase. Currently, the Straits Times Index (STI) is positioned just above the 3,335-point mark and is expected to continue its upward trend on Monday.
The global outlook for Asian markets is cautiously optimistic, bolstered by an improved forecast for interest rates. European and U.S. markets closed mostly higher, setting a positive precedent that Asian markets are likely to follow.
On Friday, the STI ended slightly higher with gains led by financial shares, while property stocks and industrial issues showed mixed performances. Specifically, the index rose by 13.21 points or 0.40%, concluding at its daily high of 3,336.59 after fluctuating between a low of 3,323.20.
Notable movements among individual stocks included CapitaLand Ascendas REIT, which declined 1.14%, and CapitaLand Integrated Commercial Trust, which increased by 0.51%. Additionally, CapitaLand Investment grew by 0.76%, City Developments plunged 5.24%, and Comfort DelGro dropped 1.42%. Other significant changes saw DBS Group rise by 1.04%, Emperador fall by 1.15%, Genting Singapore gain 0.55%, and Hongkong Land surge by 2.11%. Keppel DC REIT increased by 0.56%, and Mapletree Industrial Trust gathered 0.46%, while Mapletree Logistics Trust tumbled 1.48%. Oversea-Chinese Banking Corporation advanced by 0.83%, SATS sank 0.36%, and Seatrium Limited skyrocketed by 1,900.00%. Further movements included SembCorp Industries dropping 0.78%, Singapore Technologies Engineering rallying 0.97%, SingTel improving by 0.81%, Thai Beverage slumping 1.00%, Wilmar International losing 0.32%, Yangzijiang Financial soaring 1.56%, and Yangzijiang Shipbuilding jumping 1.33%. Keppel Ltd, Mapletree Pan Asia Commercial Trust, and Frasers Logistics remained unchanged.
The positive lead from Wall Street is fairly encouraging. While major averages opened higher on Friday, they experienced a midday slump before closing mixed. The Dow Jones Industrial Average surged by 574.82 points or 1.51% to 38,686.32. In contrast, the NASDAQ edged down by 2.08 points or 0.01% to 16,735.02, and the S&P 500 gained 42.03 points or 0.80% to end at 5,277.51.
For the week, the S&P 500 declined by 0.5%, while both the Dow and NASDAQ fell by 1.0% and 1.1% respectively. Despite these weekly setbacks, all major indices registered robust gains for the month of May.
The predominantly positive close on Wall Street followed data from the Commerce Department indicating that consumer prices in the U.S. increased as anticipated in April. Core consumer prices rose slightly less than expected, leading to optimism about a potential rate cut by the Federal Reserve in the coming months.
Oil prices declined for the third consecutive day on Friday due to concerns about future demand. However, expectations regarding an extension of OPEC production cuts helped limit the downside. West Texas Intermediate crude oil futures for July decreased by $0.92, settling at $76.99 per barrel.
