Oversold Singapore Bourse Tipped To Open Lower

(RTTNews) - The Singapore stock market has finished lower in six straight sessions, sliding more than 220 points or 7 percent along the way. The Straits Times Index now rests just beneath the 3,050-point plateau and it's expected to open under pressure again on Friday.

The global forecast for the Asian markets continues to be weak, thanks to concerns over global growth and interest rates - while tumbling crude oil prices add to the soft sentiment. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.

The STI finished sharply lower on Thursday following losses from the financial shares, property stocks and industrial issues.

For the day, the index skidded 84.09 points or 2.69 percent to finish at 3,047.39 after trading between 3,035.20 and 3,074.77. Volume was 2.1 billion shares worth 1.67 billion Singapore dollars. There were 429 decliners and 72 gainers.

Among the actives, Golden Agri-Resources plummeted 5.88 percent, while Genting Singapore plunged 5.00 percent, Comfort DelGro tumbled 4.89 percent, Keppel Corp skidded 4.01 percent, Thai Beverage dropped 3.82 percent, CapitaLand retreated 2.82 percent, SembCorp Industries declined 2.71 percent, DBS Group shed 2.57 percent, Wilmar International lost 2.55 percent, United Overseas Bank fell 2.51 percent, Oversea-Chinese Banking Corporation slid 2.47 percent, Ascendas REIT contracted 2.36 percent, Hutchison Port Holdings dipped 1.96 percent, Yangzijiang Shipbuilding eased 1.60 percent and SingTel was unchanged.

The lead from Wall Street is negative as stocks opened lower on Thursday and showed wild swings before finishing firmly in the red.

The Dow shed 545.77 points or 2.13 percent to finish at 25,052.97, while the NASDAQ lost 92.99 points or 1.25 percent to 7,329.06 and the S&P fell 57.31 points or 2.06 percent to 2,728.37.

The lower close on Wall Street came even though strength in the bond market led to a significant drop by treasury yields. Even with the decrease in yields, traders remained concerned about the outlook for the interest rates as well as the escalating trade war between the U.S. and China.

Treasuries benefited from the release of a report from the Labor Department showing consumer prices rose by less than expected in September. Also, the Labor Department noted a modest increase in first-time claims for U.S. jobless benefits in the week ended October 6.

Crude oil prices tumbled on Thursday after data showed U.S. crude stockpiles to have risen for a third straight week. Crude oil futures for November delivery ended down $2.20 or 3 percent at $70.97 a barrel.

Closer to home, Singapore will provide August figures for retail sales; in July, sales were up 2.9 percent on month and 2.6 percent on year.
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