The Singapore stock market has experienced a positive trajectory for the past four sessions, amassing nearly 120 points or 3.3%. Consequently, the Straits Times Index (STI) now surpasses the 3,670-point threshold and is anticipated to open positively on Friday.
The global economic outlook remains favorable following the Federal Reserve's decision to reduce its benchmark interest rate by 25 basis points. European and U.S. markets have mostly advanced, which is likely to set a leading example for Asian stocks.
On Thursday, the STI ended significantly higher, driven by an upsurge in financial and plantation stocks, despite a decline in trusts and a mixed performance in industrials. The index saw an impressive gain of 70.50 points or 1.96%, landing at 3,673.49, within a trading range of 3,623.56 to 3,686.64.
In terms of specific stock performances, CapitaLand Integrated Commercial Trust declined by 2.49%, CapitaLand Investment fell sharply by 3.78%, City Developments dipped 1.89%, while Comfort DelGro lost 0.67%. DBS Group saw a remarkable rise of 6.51%, DFI Retail advanced by 0.84%, Emperador decreased 1.16%, and both Genting Singapore and SembCorp Industries dropped 1.18%. Hongkong Land declined 0.84%, Keppel DC REIT plunged 3.60%, Keppel Ltd recorded a slight increase of 0.16%. Mapletree Pan Asia Commercial Trust fell 1.57%, Mapletree Industrial Trust tumbled 3.42%, and Mapletree Logistics Trust lost 3.01%. Conversely, Oversea-Chinese Banking Corporation surged 3.79%, SATS shed 0.75%, Seatrium Limited decreased 0.51%, Singapore Technologies Engineering rose by 1.51%, SingTel slightly slipped 0.31%, Venture Corporation rallied 2.40%, Wilmar International added 0.32%, Yangzijiang Financial fell 2.47%, Yangzijiang Shipbuilding gained 1.18%, and Thai Beverage remained unchanged.
Wall Street offers an optimistic lead with major indices opening mixed on Thursday and closing predominantly higher. Both the NASDAQ and S&P 500 achieved new record highs. The Dow edged down slightly by 0.59 points or 0.00% to close at 43,729.34, the NASDAQ increased by 285.99 points or 1.51% to 19,269.46, and the S&P 500 grew by 44.06 points or 0.74% to finish at 5,973.10.
The sustained strength in U.S. markets reflects ongoing optimism regarding the potential corporate benefits from former President Donald Trump’s anticipated return to the White House. This positive sentiment coincided with the Federal Reserve’s expected decision to trim interest rates by a quarter point.
Moreover, oil futures experienced a significant rise on Thursday, as traders assessed the implications of Trump's presidency on the global geopolitical landscape alongside the Federal Reserve's interest rate cut announcement. West Texas Intermediate crude oil futures for December saw an increase of $0.67 or 0.93%, closing at $72.36 per barrel.
