Singapore's stock market, which saw a modest rebound on Wednesday after a two-day losing streak, may face renewed selling pressure on Thursday. The Straits Times Index (STI) currently sits just above the 3,600-point mark, having gained 13.37 points or 0.37% to close at 3,600.78. The index had fluctuated between 3,587.89 and 3,616.84 during the session, with gains led by the property sector and mixed performances from financial and industrial stocks.
Despite the recent uptick, the outlook for Singapore's market remains cautious, as global sentiment turns negative. Rising treasury yields and concerns about the future direction of interest rates are weighing on European and US markets, and these concerns are expected to ripple through Asian markets, including Singapore.
In local stock movements, CapitaLand Integrated Commercial Trust fell 0.48%, while CapitaLand Investment slid 1.01%. Other notable movers included City Developments, which eased 0.19%, and Comfort DelGro, which shed 0.68%. DBS Group bucked the trend, rising 0.51%, while Oversea-Chinese Banking Corporation gained 1.25% and Keppel DC REIT jumped 1.30%. Meanwhile, Genting Singapore fell 0.60%, and SembCorp Industries dropped 0.74%.
On the global front, Wall Street's decline is likely to set the tone for the Singapore market. The Dow Jones Industrial Average plunged 409.94 points or 0.96%, while the NASDAQ fell 296.47 points or 1.60%. The S&P 500 also dropped 53.78 points or 0.92%. US markets have been under pressure due to a sharp rise in treasury yields, driven by expectations that the Federal Reserve may delay significant interest rate cuts. The yield on the 10-year US Treasury note has reached its highest level in three months, heightening concerns about tighter monetary policy.
In the commodities market, oil prices also slid, with West Texas Intermediate crude futures for December falling by US$0.97 or 1.35% to settle at US$70.77 per barrel. The decline was attributed to a larger-than-expected increase in US crude inventories and the strengthening of the US dollar.
As the global economic outlook remains uncertain, investors in Singapore are expected to remain cautious, with external factors likely to dominate market sentiment in the coming sessions.
RTTNews
