FX.co ★ Singapore Bourse May Give Up Support At 3,400 Points

The Singapore stock market has fluctuated between gains and losses over the past four trading sessions, following a three-day losing streak where it fell by more than 35 points, or 1 percent. Currently, the Straits Times Index (STI) hovers just below the 3,420-point mark and could face additional pressure on Friday.

Globally, the forecast for Asian markets remains bleak due to concerns about a potential economic slowdown. European and U.S. markets have closed substantially lower, and Asian markets are expected to follow this downward trend.

On Thursday, the STI dropped significantly, influenced by declines in banks, industrials, and plantations sectors, though minor support from the properties and trusts sectors helped to limit the losses. The index fell by 36.10 points, or 1.04 percent, to close at 3,419.84, trading between a low of 3,419.40 and a high of 3,454.53 throughout the day.

In specific stock movements, CapitaLand Integrated Commercial Trust surged 2.88 percent, while CapitaLand Investment edged up 0.37 percent. City Developments saw a 0.56 percent increase, and ComfortDelGro dipped 0.71 percent. Among banks, DBS Group dropped 1.67 percent, while Oversea-Chinese Banking Corporation fell by 0.20 percent.

Other notable declines included Emperador, down 1.16 percent, and Genting Singapore, which slipped 0.59 percent. However, Frasers Logistics & Commercial Trust rose 3.03 percent, and Keppel DC REIT jumped 3.47 percent. Conversely, Keppel Ltd saw a steep decline of 4.67 percent. Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, and Mapletree Logistics Trust gained 1.56 percent, 1.07 percent, and 2.33 percent respectively. SATS retreated by 1.52 percent, while SembCorp Industries and SingTel fell 0.42 percent and 1.70 percent respectively. Yangzijiang Shipbuilding declined 1.12 percent, with Seatrium Limited, Thai Beverage, Singapore Technologies Engineering, and Yangzijiang Financial remaining unchanged.

Wall Street’s lead was overwhelmingly negative. The major U.S. indices opened slightly higher on Thursday but quickly turned downwards, finishing the day well into the red. The Dow Jones Industrial Average plunged 494.82 points, or 1.21 percent, to close at 40,347.97. The NASDAQ plummeted 405.26 points, or 2.30 percent, to finish at 17,194.14. Meanwhile, the S&P 500 sank 75.62 points, or 1.37 percent, ending at 5,446.68.

The sharp sell-off was prompted by disappointing economic data, which heightened concerns about the U.S. economic outlook and overshadowed optimism about a potential near-term interest rate cut by the Federal Reserve. The Institute for Supply Management reported that U.S. manufacturing activity unexpectedly contracted further in July. Additionally, the Labor Department indicated that first-time claims for U.S. unemployment benefits rose to their highest level in nearly a year last week.

Oil futures also fell on Thursday due to concerns about weak economic data and its impact on oil demand. West Texas Intermediate crude oil futures for September settled down by $1.60, or approximately 2.05 percent, closing at $76.31 a barrel.