The Singapore stock market has experienced a downturn over the past two trading sessions, shedding nearly 35 points or 0.9%. The Straits Times Index (STI) currently hovers just above the 3,710 mark, but there are expectations that the decline might halt on Wednesday.
Globally, the outlook for Asian markets is positive, buoyed by optimistic projections regarding interest rates. While European markets saw a decline, U.S. markets showed gains, suggesting Asian markets might follow the trend set by the U.S.
On Tuesday, the STI saw a moderate decline, primarily driven by losses in the financial and industrial sectors, although property and trust-related stocks displayed mixed results. The index fell 19 points or 0.51%, closing at 3,712.39, after fluctuating between 3,705.05 and 3,728.81 throughout the day.
Among active stocks, CapitaLand Integrated Commercial Trust decreased by 0.51%, and CapitaLand Investment took a significant hit, dropping 3.55%. City Developments fell by 1.14%, Comfort DelGro declined 0.68%, and DBS Group slipped 1.28%. Emperador saw a decrease of 1.20%, while Genting Singapore rose 0.65% and Hongkong Land increased 0.43%. Meanwhile, Keppel DC REIT suffered a sharp fall of 5.46%, Keppel Ltd edged down 0.45%, and Mapletree Industrial Trust gained 0.44%. Mapletree Logistics Trust and Jardine Matheson each dropped 0.78%, Oversea-Chinese Banking Corporation lost 0.56%, and SATS fell 1.04%. Seatrium Limited climbed 1.04%, SembCorp Industries decreased 1.34%, and Singapore Technologies Engineering and SingTel both saw a 0.66% decline. Thai Beverage surged 1.89%, Wilmar International fell 1.29%, Yangzijiang Shipbuilding plummeted 3.80%, while Mapletree Pan Asia Commercial Trust, Yangzijiang Financial, Frasers Centrepoint Trust, and Frasers Logistics & Commercial Trust remained unchanged.
Wall Street offers a positive lead, as major indices began Tuesday mixed but trended upward throughout the session, closing in positive territory. The Dow rose 123.74 points or 0.28% to reach a record high of 44,860.31. Meanwhile, the NASDAQ climbed 119.46 points or 0.63% to 19,174.30, and the S&P 500 increased by 34.28 points or 0.57% to finish at a record 6,021.63.
This upward trend in the major indices followed the release of the Federal Reserve’s latest monetary policy meeting minutes, which indicated that officials believe a "gradual" lowering of interest rates would be appropriate. The minutes reflected confidence that a step-by-step approach to easing rates towards a more neutral stance would be warranted if economic data align with expectations, showing inflation sustainably moving towards 2% and employment near maximum capacity.
On the commodity front, oil prices edged lower on Tuesday amid reports suggesting that Israel and Hezbollah may be nearing a cease-fire agreement in the coming days. West Texas Intermediate Crude oil futures for January declined by $0.17 to settle at $68.77 a barrel.
