The Singapore stock market has experienced a decline for two consecutive sessions, shedding over 85 points or 2.2%. The Straits Times Index is now slightly above the 3,800 mark and faces the potential for further losses as we approach Monday.
The forecast for Asian markets is generally pessimistic, influenced by robust U.S. employment data that has impacted interest rate predictions. Both European and U.S. markets closed with significant losses, setting the stage for a similar opening in Asian markets.
On Friday, the Straits Times Index closed notably lower, impacted by declines in financial stocks, trusts, real estate, and industrial sectors. The index dropped 61.04 points, or 1.58%, closing at 3,801.56, with a trading range of 3,785.68 to 3,843.35.
Active stocks showed mixed results: CapitaLand Integrated Commercial Trust decreased by 0.51%, CapitaLand Investment was down 0.40%, and City Developments fell 0.20%. Comfort DelGro rose by 0.69%, while DBS Group and Genting Singapore fell by 1.93% and 1.32%, respectively. Other noteworthy movements included a 2.59% fall for Keppel Ltd, a 1.64% retreat for Mapletree Pan Asia Commercial Trust, and a 2.29% drop for Oversea-Chinese Banking Corporation. SembCorp Industries plummeted 3.53%, while Yangzijiang Financial saw a 1.22% rally. Various stocks like Keppel DC REIT, Mapletree Logistics Trust, SATS, UOL Group, DFI Retail, and Emperador remained unchanged.
The outlook from Wall Street is unfavorable, with significant drops across major indices on Friday, which remained negative throughout the day. The Dow Jones Industrial Average plunged 696.75 points or 1.63% to close at 41,938.45. Similarly, the NASDAQ fell 317.27 points or 1.63% to finish at 19,161.63, while the S&P 500 decreased 91.21 points or 1.54% to close at 5,827.04.
Wall Street's downturn was fueled by strong non-farm payroll data, heightening fears that the Federal Reserve might maintain or slow the reduction of interest rates. This data confirms labor market strength, possibly reinforcing the Federal Reserve's strategy to gradually lower interest rates in the upcoming year.
Meanwhile, oil prices surged on Friday following the Biden Administration's move to levy further sanctions on Russian oil exports. West Texas Intermediate Crude for February delivery closed at $76.57 a barrel, up by $2.65 or 3.6%, marking its highest closing in three months.
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