FX.co ★ Singapore Shares May Be Stuck In Neutral On Tuesday

The Singapore stock market has extended its winning streak to six consecutive sessions, gaining nearly 120 points or 3.2% in that timeframe. The Straits Times Index (STI) is currently positioned just above the 3,570-point mark but may face stagnation on Tuesday.

The global outlook for Asian markets suggests minimal movement ahead of the Federal Reserve's upcoming monetary policy decision. Both European and U.S. markets experienced mixed, minor changes, a trend likely to be mirrored by Asian bourses.

On Monday, the STI saw a modest increase driven by gains in trusts, properties, and plantations, while financials and industrials showed mixed results. The index rose by 7.78 points, or 0.22%, concluding the day at its peak of 3,570.43 after dipping to a low of 3,543.87.

Key performers of the day included CapitaLand Integrated Commercial Trust, which surged 1.88%, and CapitaLand Investment, which gained 1.75%. City Developments also saw a spike of 1.87%, while DBS Group increased by a modest 0.16%. Emperador, on the other hand, slipped 1.15%. Also notable were Genting Singapore, which increased by 0.60%, and Hongkong Land, which strengthened by 1.38%. Keppel DC REIT and Keppel Ltd saw gains of 1.82% and 1.61%, respectively. Other significant movements included Mapletree Pan Asia Commercial Trust rising by 2.07%, Mapletree Industrial Trust advancing by 1.19%, and Mapletree Logistics Trust falling by 0.69%. Oversea-Chinese Banking Corporation dropped 0.33%, SATS decreased by 0.81%, Seatrium Limited climbed by 1.21%, and SembCorp Industries lost 0.58%. Additionally, Singapore Technologies Engineering declined by 1.07%, SingTel gained 0.61%, Wilmar International added 0.64%, and Yangzijiang Shipbuilding decreased by 0.78%. Comfort DelGro, Thai Beverage, Yangzijiang Financial, Frasers Logistics & Commercial Trust, and DFI Retail Group remained unchanged.

Wall Street’s lead offers minimal clarity as the major averages opened mixed on Monday, largely oscillated around the line, and closed with negligible changes. The Dow managed to advance by 228.30 points, or 0.55%, ending at a record 41,622.08. Conversely, the NASDAQ fell by 91.85 points, or 0.52%, closing at 17,592.13, and the S&P 500 edged up by 7.07 points, or 0.13%, finishing at 5,633.09.

Wall Street’s tepid performance was influenced by investor caution ahead of Wednesday’s Federal Reserve monetary policy announcement. Broad consensus suggests a rate cut, though there is still debate regarding its magnitude. According to CME Group's FedWatch Tool, there is a 65.0% probability of a half-point rate cut and a 35.0% probability of a quarter-point reduction.

On the economic front, the Federal Reserve Bank of New York reported that regional manufacturing increased in September, marking the first growth in nearly a year.

Oil prices rose on Monday as concerns about tight supply outweighed demand outlooks, further bolstered by a weak dollar. West Texas Intermediate crude oil futures for October increased by $1.44, closing at $70.09 per barrel.

Domestically, Singapore is set to release August figures for non-oil exports, the trade balance, and second-quarter unemployment data later today. In July, exports rose 12.2% month-on-month and 15.7% year-on-year, resulting in a trade surplus of SGD 6.486 billion. The unemployment rate is expected to hold steady at 2.0%.