As the Deepavali holiday approached on Thursday, the Singapore stock market experienced another dip following a brief respite that broke a two-day losing streak during which it had declined over 20 points, equivalent to 0.6 percent. The Straits Times Index (STI) is currently hovering just below the 3,560 mark, with potential for further decline anticipated on Friday.
The global forecast for Asian markets remains predominantly bearish, with technology stocks expected to be under pressure due to diminishing optimism concerning interest rate prospects. Both European and U.S. markets ended the session with notable losses, and it's likely that Asian stock exchanges will follow this downward trend.
On Wednesday, the STI closed slightly lower, as losses in financials and industrials were cushioned by gains in the property sector. The index dropped 31.48 points or 0.88 percent, ending at 3,558.88 after fluctuating between 3,553.85 and 3,592.98 throughout the day. Among active stocks, CapitaLand Integrated Commercial Trust dipped 0.98 percent, CapitaLand Investment fell 1.06 percent, while City Developments and Yangzijiang Shipbuilding both rose by 0.78 percent. ComfortDelGro increased by 0.68 percent. Conversely, DBS Group declined 1.60 percent, Genting Singapore was down 0.60 percent, and Hongkong Land surged 10.80 percent. Keppel DC REIT decreased 2.14 percent, and Keppel Ltd dropped 1.54 percent. Mapletree Pan Asia Commercial Trust fell 0.76 percent, whereas Mapletree Industrial Trust saw a gain of 0.42 percent, and Mapletree Logistics Trust decreased by 0.75 percent. Oversea-Chinese Banking Corporation slid 1.56 percent. Meanwhile, SATS edged up 0.25 percent, SembCorp Industries dropped 1.95 percent, Singapore Technologies Engineering fell 2.16 percent, and SingTel declined 1.57 percent. Thai Beverage climbed 0.95 percent, while Wilmar International saw a slight reduction of 0.62 percent. Yangzijiang Financial decreased by 1.23 percent, with Emperador, Seatrium Limited, and Frasers Logistics & Commercial Trust remaining unchanged.
Wall Street painted a grim picture, with major indices opening decisively lower and remaining in that position throughout the trading session. The Dow Jones Industrial Average fell 378.08 points or 0.90 percent to 41,763.46, the NASDAQ dropped 512.78 points or 2.76 percent to 18,095.15, and the S&P 500 slumped 108.22 points or 1.86 percent to settle at 5,705.45.
This sell-off was triggered by a negative market reaction to earnings reports from technology leaders Microsoft (MSFT) and Meta Platforms (META). Additionally, traders responded to consumer price inflation data, which mostly met economist forecasts, except for core CPI, which stubbornly defied expectations to remain unchanged. This situation fed into recent apprehensions that the Federal Reserve might not reduce interest rates as swiftly as some had hoped.
Meanwhile, oil prices rose on Thursday, driven by projected increased demand from the U.S. and expectations of a potential delay in OPEC's December output expansion plans. West Texas Intermediate crude oil futures for December delivery rose by $0.65, or 0.95 percent, to close at $69.26 per barrel.
