The Singapore stock market has experienced gains in two out of the last three trading days, rebounding from a three-day losing streak where it lost over 35 points or approximately 1 percent. The Straits Times Index (STI) currently sits just above the 3,455-point mark and is anticipated to further its gains on Thursday.
The global outlook for Asian markets is positive, driven by an improved forecast for interest rates. Both European and U.S. markets recorded significant gains, setting the stage for Asian markets to follow.
On Wednesday, the STI saw modest gains, supported by increases in financial and industrial shares, though the property sector displayed a mixed performance. For the day, the STI added 14.17 points or 0.41 percent, closing at 3,455.94 after fluctuating between 3,442.55 and 3,463.10.
In active trading, CapitaLand Integrated Commercial Trust gained 0.48 percent, while CapitaLand Investment fell 0.37 percent. City Developments rose by 0.38 percent, Comfort DelGro strengthened by 1.45 percent, and DBS Group increased by 0.08 percent. Emperador climbed 1.18 percent, whereas Hongkong Land tumbled 1.52 percent. Keppel DC REIT lost 0.49 percent, but Keppel Ltd rallied by 1.68 percent. Mapletree Pan Asia Commercial Trust declined by 0.78 percent, while Mapletree Logistics Trust saw a minor increase of 0.05 percent. Oversea-Chinese Banking Corporation gained 0.34 percent, with SATS soaring 3.47 percent and Seatrium Limited surging 4.35 percent. SembCorp Industries advanced 1.71 percent, Singapore Technologies Engineering increased 0.68 percent, Wilmar International added 0.63 percent, Yangzijiang Financial jumped 1.49 percent, and Yangzijiang Shipbuilding spiked 3.07 percent. SingTel, Thai Beverage, Mapletree Industrial Trust, and Genting Singapore remained unchanged.
The positive lead from Wall Street is likely to bolster Asian markets. The major U.S. indices opened higher on Wednesday and sustained gains throughout the session. The Dow Jones Industrial Average added 99.46 points or 0.24 percent, finishing at 40,842.79. The NASDAQ surged 451.98 points or 2.64 percent, closing at 17,599.40, and the S&P 500 rallied 85.86 points or 1.58 percent, ending at 5,522.30.
The early rally on Wall Street was influenced by favorable corporate earnings reports from companies like Advanced Micro Devices (AMD), Starbucks (SBUX), and DuPont (DD). Additionally, stocks continued to show strength following the Federal Reserve's monetary policy announcement. Although the Fed kept interest rates unchanged as expected, subtle adjustments in the accompanying statement may suggest future rate cuts. Fed Chair Jerome Powell indicated in his post-meeting press conference that a potential rate cut in September could be considered if economic data remains consistent.
Oil prices surged on Wednesday due to concerns over possible supply disruptions amid rising Middle East tensions and a larger-than-expected drop in U.S. crude inventories. West Texas Intermediate Crude oil futures for September rose by $3.18 or 4.3 percent, closing at $77.91 per barrel.
