The Singapore stock market has experienced a downturn, marking its fifth consecutive session of losses and shedding nearly 115 points, equivalent to a 3% decline overall. Currently, the Straits Times Index (STI) hovers slightly above the 3,770-point level, although a potential recovery is anticipated for Thursday.
The global market outlook for Asian stocks remains optimistic, buoyed by U.S. inflation data that has alleviated concerns about future interest rate hikes. Both European and U.S. markets closed significantly stronger, providing a positive cue for Asian markets to potentially follow suit.
On Wednesday, the STI saw a modest dip, primarily affected by declining financial and industrial stocks. Specifically, the index dropped by 16.19 points or 0.43%, closing at 3,772.58 after fluctuating between 3,765.41 and 3,796.63 throughout the trading session.
In terms of individual stock performances, CapitaLand Investment increased by 1.63%, City Developments edged up by 0.20%, and Comfort DelGro fell sharply by 2.08%. Conversely, DBS Group decreased by 0.91%, while Genting Singapore surged by 2.04%. Hongkong Land declined by 1.42%, whereas Keppel DC REIT experienced a modest gain of 0.47%. Keppel Ltd, however, saw a reduction of 0.44%. Meanwhile, Mapletree Logistics Trust advanced by 0.80%, Oversea-Chinese Banking Corporation dropped by 0.30%, Seatrium Limited had a slight gain of 0.46%, and SembCorp Industries dipped by 0.18%. Singapore Technologies Engineering spiked by 1.94%, Thai Beverage rallied by 0.93%, Wilmar International slid by 0.65%, Yangzijiang Financial stumbled by 1.19%, and Yangzijiang Shipbuilding faced a steep decline of 3.58%. Several stocks, including Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, Emperador, SingTel, SATS, CapitaLand Integrated Commercial Trust, and Frasers Logistics & Commercial Trust, remained unchanged.
Wall Street provided a strong lead, with the major indices opening significantly higher and maintaining their gains throughout the trading day. The Dow Jones Industrial Average soared by 703.27 points or 1.65%, ending at 43,221.55. The NASDAQ Composite advanced by 466.84 points or 2.45%, closing at 19,511.23, while the S&P 500 increased by 107.00 points or 1.83%, finishing at 5,949.91.
The rally in U.S. markets was catalyzed by a favorable response to the Labor Department's consumer price inflation report for December. Although consumer prices rose slightly more than anticipated, the core consumer price growth on an annual basis unexpectedly decelerated. Positive sentiment was further bolstered by strong earnings reports from major financial institutions such as JPMorgan Chase, Goldman Sachs, and Citigroup.
Oil prices surged on Wednesday as U.S. crude inventories declined over the past week, coupled with the potential for supply disruptions stemming from new sanctions against Russia. Consequently, West Texas Intermediate crude oil futures for February rose by $2.54 or 3.3%, reaching $80.04 per barrel.
The material has been provided by InstaForex Company -
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