The Singapore stock market has experienced a positive trend, rising for two consecutive sessions and gaining nearly 75 points, or 1.7 percent. As of now, the Straits Times Index (STI) is positioned just above the 4,580-point threshold. However, experts suggest that the index may encounter resistance and potentially stagnate on Monday.
Internationally, the outlook for Asian markets appears bleak due to renewed concerns regarding interest rates. Recent downturns in European and U.S. markets are likely to influence a similar pattern across Asia.
On Friday, the STI saw a robust increase, buoyed by gains in financial shares, property stocks, and industrial sectors. The index surged 65.62 points, or 1.45 percent, concluding at 4,586.45 after experiencing a trading low of 4,553.09 earlier in the day.
Notable performers included CapitaLand Ascendas REIT, which rose by 1.46 percent, and various other CapitaLand entities such as CapitaLand Integrated Commercial Trust and CapitaLand Investment, which gained 0.43 percent and 1.54 percent, respectively. City Developments distinguished itself with a 1.80 percent rally. Major banks also fared well, with DBS Group gaining 1.20 percent and Oversea-Chinese Banking Corporation increasing by 1.32 percent. In contrast, some stocks lagged behind; for instance, DFI Retail Group slipped by 0.25 percent and Genting Singapore fell by 0.69 percent.
The performance of the STI is in contrast to the trends observed in Wall Street, where major averages were initially mixed but ultimately turned negative, remaining underwater for the session. The Dow Jones Industrial Average dropped 245.96 points, or 0.51 percent, closing at 34,458.05. The NASDAQ experienced a more significant decline, tumbling 398.69 points, or 1.69 percent, to finish at 13,195.17, while the S&P 500 fell by 73.59 points, or 1.07 percent, ending at 4,827.41.
Over the past week, the Dow recorded a modest gain of 1.1 percent, while the S&P 500 decreased by 0.6 percent and the NASDAQ saw a substantial dive of 1.6 percent. The downturn in Wall Street was primarily linked to heavy selling in technology stocks, driven by renewed fears regarding stock valuations.
Contributing to the fragile sentiment was commentary from Chicago Federal Reserve President Austan Goolsbee. He mentioned his decision to oppose reducing interest rates during the previous week’s Federal Open Market Committee meeting, emphasizing that more inflation data should have been gathered before making such a significant move.
In the commodities market, crude oil prices weakened on Friday, reflecting traders’ caution amid ongoing geopolitical tensions, particularly related to the Russia-Ukraine conflict and rising frictions between the U.S. and Venezuela. West Texas Intermediate crude for January delivery fell by $0.20, or 0.4 percent, settling at $57.40 per barrel.
