Market Commentary and Intraday News

Singapore Stock Market May Reverse Tuesday's Gains

259 days ago

(RTTNews) - The Singapore stock market bounced right back to the upside again on Tuesday, one session after it had ended the two-day winning streak in which it had risen almost 15 points or 0.5 percent. The Straits Times Index closed just below the 3,080-point plateau, and now investors are looking for renewed selling pressure when the market opens on Wednesday.

The global forecast for the Asian markets is mixed to lower following reports that a bailout request from Spain may not be forthcoming after all. Spanish officials were said to be ready to ask for a bailout, although Spanish Prime Minister Mariano Rajoy later denied that report, fomenting additional uncertainty. Traders also may be reluctant to make any significant moves ahead of Friday's monthly U.S. jobs report. The European markets were lower and the U.S. bourses were mixed but little changed - and the Asian markets figure to split the difference.

The STI finished modestly higher on Tuesday as gains from the property stocks and financial shares were limited by weakness from the plantation sector.

For the day, the index climbed 21.28 points or 0.70 percent to finish at 3,079.14 after trading between 3,060.72 and 3,080.95 on volume of 1.69 billion shares. There were 215 gainers and 191 decliners.

Among the actives, Keppel Corp added 0.44 percent, CapitaLand collected 0.32 percent, CapitaMalls Asia rose 0.61 percent, Oversea-Chinese Banking Corp gained 0.75 percent and United Overseas Bank was up 0.15 percent, while Golden Agri-Resources shed 0.76 percent, Wilmar International lost 0.31 percent, Noble Group fell 0.38 percent and Olam International dipped 0.49 percent.

The lead from Wall Street offers little clarity as stocks turned in a lackluster performance on Tuesday as traders focused on the latest headlines out of Europe. The major averages eventually ended the session mixed for the second straight day.

The choppy trading came as traders digested mixed news regarding the possibility of a bailout for Spain in the near term. Early strength was generated by a report from Reuters indicating that the debt-plagued county is ready to request a bailout as early as next weekend.

Reuters said that Spanish officials are now ready to ask for a bailout - but Spanish Prime Minister Mariano Rajoy later denied the report, saying that a bailout request from Spain is not "imminent." The remarks by Rajoy pulled stocks down off their early highs, as they led to renewed uncertainty about the timing of a Spanish bailout.

Traders also seemed reluctant to make any significant moves ahead of Friday's monthly jobs report, which could have a significant impact on the outlook for the economy.

Among individual stocks, shares of Core Laboratories (CLB) moved sharply lower after the oil services provider warned of weaker than previously forecast third quarter results. Wausau Paper (WPP) also posted a steep loss after lowering its full-year earning guidance. On the other hand, shares of Stage Stores (SSI) surged after reporting that sales spiked 13.7 percent in September.

The major U.S. averages were mixed but little changed on Tuesday as the Dow edged down 32.75 points or 0.2 percent to finish at 13,482.36, while the NASDAQ inched up 6.51 points or 0.2 percent to end at 3,120.04 and the S&P 500 crept up 1.26 points or 0.1 percent to close at 1,445.75.

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