(RTTNews) – The Singapore stock market has finished lower in five straight sessions, sinking more than 120 points or 2.5 percent along the way. The Straits Times Index now rests just beneath the 3,235-point plateau although it’s expected to find support on Wednesday.
The global forecast for the Asian markets is mostly higher, with bargain hunting limited by concerns about economic growth and interest rates. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The STI finished sharply lower on Tuesday following losses from the financial shares, property stocks and industrial issues.
For the day, the index dropped 40.88 points or 1.25 percent to finish at 3,234.19 after trading between 3,226.50 and 3,251.31. Volume was 1.66 billion shares worth 1.66 billion Singapore dollars. There were 400 decliners and 145 gainers.
Among the actives, Ascendas REIT fell 1.08 percent, while CapitaLand Integrated Commercial Trust sank 1.33 percent, CapitaLand Investment tanked 2.81 percent, City Developments stumbled 1.98 percent, Comfort DelGro skidded 1.36 percent, Dairy Farm International plummeted 4.38 percent, DBS Group slumped 1.37 percent, Genting Singapore eased 0.63 percent, Hongkong Land dipped 0.85 percent, Keppel Corp and United Overseas Bank both retreated 1.54 percent, Mapletree Commercial Trust weakened 1.61 percent, Mapletree Industrial Trust slipped 0.80 percent, Mapletree Logistics Trust shed 1.19 percent, Oversea-Chinese Banking Corporation lost 1.18 percent, SATS dropped 1.34 percent, SembCorp Industries tumbled 2.78 percent, Singapore Exchange slid 1.05 percent, Singapore Technologies Engineering declined 2.19 percent, SingTel jumped 1.82 percent, Thai Beverage was down 0.74 percent, Wilmar International surrendered 2.56 percent, Yangzijiang Financial plunged 3.12 percent and Yangzijiang Shipbuilding added 0.56 percent.
The lead from Wall Street is murky as the major averages spent most of Tuesday bouncing back and forth across the unchanged line before finally settling on opposite sides.
The Dow shed 84.96 points or 0.26 percent to finish at 32,160.74, while the NASDAQ jumped 114.42 points or 0.98 percent to end at 11,737.67 and the S&P 500 added 9.81 points or 0.25 percent to close at 4,001.05.
The volatility came as traders continued to debate whether the markets have reached their bottom following the recent sell-off.
Bargain hunting contributed to early strength on Wall Street as some traders looked to pick up stocks at reduced levels. Buying interest waned over the course of the morning, however, as traders were wary about inflation, higher interest rates and the outlook for the global economy.
Stocks continued to fluctuate over the course of the session as traders looked ahead to the release of key inflation data in the coming days. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
Crude oil prices fell sharply on Tuesday, extending losses from the previous session amid concerns over a likely drop in energy demand. A stronger dollar weighed as well on oil prices. West Texas Intermediate Crude oil futures for June ended lower by $3.33 or 3.2 percent at $99.76 a barrel, a two-week low.