The Singapore stock market experienced another upward trend on Wednesday, following a brief halt in its two-day winning sequence that had netted over 20 points, or a 0.6% increase. The Straits Times Index (STI) currently hovers just above the 3,595 mark, with potential for further gains anticipated on Thursday.
The optimistic outlook for interest rates buoyed global forecasts for Asian markets. Encouraging performances from the European and U.S. markets suggest that Asian stock exchanges are likely to mirror this positive trajectory.
On Wednesday, the STI achieved a moderate gain, supported by varied performances across financial and industrial stocks. Specifically, the index rose by 19.97 points, or 0.56%, closing at 3,595.66 after fluctuating between 3,577.48 and 3,606.79 during the day.
Key performers included CapitaLand Integrated Commercial Trust, which rose by 0.95%, while CapitaLand Investment decreased by 0.66%. City Developments fell by 1.12%, whereas DBS Group climbed by 1.17%. Genting Singapore dipped by 0.57%, and Hongkong Land saw a significant decline of 2.89%. Meanwhile, Keppel DC REIT and Keppel Ltd experienced a rise of 1.40% and a decrease of 0.46% respectively. Mapletree Industrial Trust rose by 0.82%, and Oversea-Chinese Banking Corporation surged by 1.21%. SATS saw a slight increase of 0.27%, while Seatrium Limited plummeted by 2.86%. Singapore Technologies Engineering gained 0.86%, and Wilmar International fell by 0.60%. Yangzijiang Financial fell by 1.22%, while Yangzijiang Shipbuilding advanced by 1.19%. Several other stocks, including SingTel, Thai Beverage, Mapletree Pan Asia Commercial Trust, SembCorp Industries, Emperador, Mapletree Logistics Trust, Comfort DelGro, and Frasers Logistics & Commercial Trust, maintained steady positions.
Wall Street provided a positive lead, with major indices opening steady but climbing as the day progressed, concluding near the day's peak values. The Dow Jones Industrial Average soared 431.63 points, or 1.03%, to close at a record 42,512.00. The NASDAQ increased by 108.70 points, or 0.60%, finishing at 18,291.62, and the S&P 500 climbed by 40.91 points, or 0.71%, reaching another record at 5,792.04.
This upward momentum followed the release of the Federal Reserve's September meeting minutes, revealing a preference among most members for a more substantial rate cut, fueling optimism for future reductions.
In economic developments, the U.S. Department of Commerce reported a decrease in the trade deficit, which fell to $70.4 billion in August from a revised $78.9 billion in July. Expectations were for the deficit to reduce to $70.6 billion, down from an originally reported $78.8 billion in the previous month.
On the commodities front, crude oil prices fell on Wednesday. A significant increase in crude inventories overshadowed potential supply disruptions from Hurricane Milton and Middle Eastern tensions. West Texas Intermediate Crude futures for November declined by $0.33, or 0.45%, settling at $73.24 per barrel.
