The Singapore stock market has finished lower in three straight sessions, tumbling more than 130 points or 3.8 percent in that span. The Straits Times Index now rests just above the 3,405-point plateau although it's expected to see a firm recovery on Wednesday.
The global forecast for the Asian markets is broadly positive as analysts believe this week's brutal selloff has been seriously overdone. The European markets were down and the U.S. bourses were sharply higher - and the Asian markets figure to follow the latter lead.
The STI finished sharply lower on Tuesday following losses from the financial shares, plantation stocks, plantations and properties.
For the day, the index skidded 76.55 points or 2.20 percent to finish at 3,406.38 after trading between 3,353.96 and 3,414.24. Volume was 3.8 billion shares worth 2.9 billion Singapore dollars. There were 518 decliners and 90 gainers.
Among the actives, Keppel Corp plummeted 4.32 percent, while Golden Agri-Resources plunged 4.00 percent, SembCorp Industries tumbled 3.94 percent, Genting Singapore skidded 3.79 percent, Comfort DelGro dropped 3.74 percent, Yangzijiang Shipbuilding retreated 3.29 percent, CapitaLand Commercial Trust shed 2.81 percent, Oversea-Chinese Banking Corporation lost 2.71 percent, Hutchison Port Holdings and City Developments both fell 2.67 percent, United Overseas Bank slid 2.02 percent, SingTel gave away 1.72 percent and DBS Group and Wilmar International both were down 1.61 percent.
The lead from Wall Street is broadly positive as stocks saw considerable volatility on Tuesday before ending firmly in positive territory, denting the sell-off in the previous session.
The Dow jumped 567.02 points or 2.33 percent to 24,912.77, while the NASDAQ surged 148.36 points or 2.13 percent to 7,115.88 and the S&P climbed 46.20 points or 1.74 percent to 2,695.14.
The volatility seen for most of the session came as traders seemed to question the near-term outlook for the markets. Some traders looked to pick up stocks at reduced levels, while others wondered if the recent pullback would continue.
Railroad stocks showed a substantial move to the upside, while computer hardware, semiconductor and chemical stocks also saw solid gains.
Crude oil futures continued to fall Tuesday, even as U.S. stocks were found their footing after the biggest one-day drop for the Dow Jones Industrial Average. A report from the Energy Information Administration said U.S. production will rise in the next two years, denting oil prices.
March WTI crude was down 30 cents or 0.5 percent at $63.85 a barrel. WTI crude will average $58.28 a barrel this year, the EIA said, up from last month's estimate of $55.33, and $57.51 in 2019.
by RTT Staff Writer
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