The Singapore stock market has experienced a positive trend, advancing over five consecutive sessions, accumulating more than 90 points or a 2.4% increase. The Straits Times Index (STI) is now positioned just below the 3,800-point mark and is projected to open on a positive note this Thursday.
The global outlook for Asian markets remains optimistic, driven by a favorable forecast for interest rates. However, geopolitical factors could potentially limit this growth. Both European and U.S. markets showed gains, and Asian markets are anticipated to follow suit.
On Wednesday, the STI showed a modest rise as financial and industrial sectors posted gains, which were somewhat offset by the underperformance of REITs and a mixed outcome in the property sector.
For the day, the STI gained 13.81 points or 0.36% to conclude at 3,799.94, having fluctuated between 3,790.47 and 3,812.04 during trading.
In terms of active stocks, CapitaLand Investment climbed 0.36%, City Developments advanced 0.76%, DBS Group increased 0.71%, while Emperador declined 1.19%. Notably, Genting Singapore fell 1.27%, Hongkong Land decreased 0.88%, and Keppel DC REIT dropped 2.65%. Meanwhile, Keppel Ltd saw a slight rise of 0.29%, Mapletree Industrial Trust fell by 0.87%, and Mapletree Logistics Trust dipped 0.77%. Oversea-Chinese Banking Corporation gained 0.56%, SATS added 0.80%, Seatrium Limited surged 1.00%, and SembCorp Industries increased by 1.66%. Singapore Technologies Engineering rose 0.88%, SingTel climbed 0.96%, Thai Beverage saw a significant drop of 4.20%, Wilmar International slipped 0.96%, Yangzijiang Financial jumped 1.25%, Yangzijiang Shipbuilding surged 2.79%, while CapitaLand Integrated Commercial Trust, Comfort DelGro, and Mapletree Pan Asia Commercial Trust remained steady.
Wall Street's influence was positive, with major indices opening higher on Wednesday and maintaining gains to close at record highs.
The Dow Jones gained 308.51 points or 0.69% to close at 45,014.04. Similarly, the NASDAQ spiked 254.21 points or 1.30% to 19,735.12, while the S&P 500 rose 36.61 points or 0.61% to 6,086.49.
The optimism on Wall Street stemmed from expectations regarding interest rates, influenced by weaker-than-anticipated U.S. economic data. ADP reported a smaller-than-expected increase in U.S. private sector employment for November, while the Institute for Supply Management highlighted a more significant slowdown in U.S. service sector growth for the same period.
As a result, CME Group's FedWatch Tool suggested a 75.5% probability that the Federal Reserve would reduce interest rates by 25 basis points later this month. Nevertheless, Federal Reserve Chair Jerome Powell emphasized a cautious approach to rate cuts in light of the economy's sustained strength.
Meanwhile, crude oil prices fell sharply on Wednesday due to geopolitical tensions in the Middle East and the Russia-Ukraine conflict, compounded by political instability in South Korea and France. West Texas Intermediate Crude oil futures for January closed down $1.40, or 2%, at $68.54 a barrel.
In Singapore, October retail sales data is expected to be released today. In September, retail sales rose 0.4% month-on-month and 2.0% year-on-year.
