FX.co ★ Higher Open Called For Singapore Stock Market

As the Lunar New Year break approaches, the Singapore stock market has ended a two-day downturn, during which it lost over 10 points or 0.2 percent. The Straits Times Index (STI) is currently positioned just above the 3,800-point mark and is likely to receive additional support on Friday.

The outlook for Asian markets is optimistic, with expected boosts from sectors such as oil, gold, and technology stocks. After positive performances in European and U.S. markets on Thursday, it is anticipated that Asian markets will follow this upward trend.

On Tuesday, the STI experienced modest gains influenced by the property and trust sectors, although financials showed mixed results and industrials were weak. The index rose by 4.36 points or 0.11 percent to close at 3,801.07, having reached a high of 3,837.88.

In active trading, CapitaLand Integrated Commercial Trust increased by 0.52 percent, CapitaLand Investment climbed 0.41 percent, and City Developments went up 0.60 percent. Comfort DelGro, however, decreased by 0.72 percent, while DBS Group edged up 0.30 percent. Genting Singapore fell by 0.68 percent, and Keppel DC REIT saw a significant rise of 2.87 percent. Meanwhile, Keppel Ltd dropped by 0.59 percent. Mapletree Pan Asia Commercial Trust advanced 1.67 percent, Mapletree Industrial Trust rose 0.47 percent, while Oversea-Chinese Banking Corporation dipped 0.29 percent. Other notable movements included SATS, which lost 0.58 percent, Seatrium Limited, which decreased 0.45 percent, and SembCorp Industries, which tumbled 2.16 percent. Singapore Technologies Engineering fell by 1.03 percent, SingTel surged 1.87 percent, and Wilmar International slid 0.33 percent. Yangzijiang Shipbuilding declined by 1.98 percent, with Yangzijiang Financial, Thai Beverage, Emperador, Mapletree Logistics Trust, and Jardine Cycle remaining unchanged.

Wall Street's influence remains encouraging, as major averages opened higher on Thursday, occasionally dipped but finished the session in positive territory. The Dow Jones Industrial Average gained 168.61 points or 0.38 percent to close at 44,882.13, while the NASDAQ rose by 49.43 points or 0.25 percent to 19,681.75, and the S&P 500 increased by 31.86 points or 0.53 percent to 6,071.17.

The late session saw major averages decline after former President Donald Trump announced plans to implement a 25 percent tariff on imports from Canada and Mexico starting February 1. Despite this, a rally towards the close showed recovery buoyed by volatility linked to earnings reports throughout the day. Positive quarterly performances were reported by IBM Corp. and Meta Platforms, whereas Microsoft and UPS delivered satisfactory earnings but issued disappointing forward guidance.

In the oil market, futures finished slightly higher on Thursday due to potential supply declines amid the impending tariffs on Canadian and Mexican goods, coupled with a weaker U.S. dollar. West Texas Intermediate crude oil futures for March saw a modest increase, rising $0.11 or 0.15 percent to $72.73 per barrel.