The Singapore stock market turned lower again on Friday, one session after it had snapped the four-day losing streak in which it had surrendered more than 150 points or 4.5 percent. The Straits Times Index now rests just above the 3,375-point plateau although the market may find support on Monday.
The global forecast for the Asian markets is firm, with bargain hunting expected after heavy damage last week. The European markets were down and the U.S. bourses were up - and the Asian markets figure to follow the latter lead.
The STI finished sharply lower on Friday following losses from the financials, properties, plantations and industrials.
For the day, the index skidded 38.66 points or 1.13 percent to finish at 3,377.24 after trading between 3,340.55 and 3,382.66. Volume was 2.54 billion shares worth 1.96 billion Singapore dollars. There were 448 decliners and 85 gainers.
Among the actives, Yangzijiang Shipbuilding plummeted 4.79 percent, while Hutchison Port Holdings plunged 4.49 percent, City Developments tumbled 3.69 percent, Genting Singapore skidded 3.20 percent, Keppel Corp dropped 3.19 percent, CapitaLand surrendered 3.07 percent, Golden Agri-Resources shed 2.74 percent, CapitaLand Commercial Trust lost 1.71 percent, Comfort DelGro was down 1.48 percent, Wilmar International slid 1.32 percent, SembCorp Industries dipped 1.21 percent, United Overseas Bank gave away 1.09 percent, SingTel fell 0.59 percent, Oversea-Chinese Banking Corporation shed 0.57 percent and DBS Group, Thai Beverage and CapitaLand Mall Trust all were unchanged.
The lead from Wall Street is positive as stocks saw substantial volatility on Friday, showing wild swings before closing sharply higher.
The Dow added 330.44 points or 1.38 percent to 24,190.90, the NASDAQ gained 97.33 points or 1.44 percent to 6,874.49 and the S&P jumped 38.55 points 1.49 percent to 2,619.55. For the week, the NASDAQ plummeted 5.1 percent and the Dow and the S&P both plunged 5.2 percent.
The higher close was due to bargain hunting after steep losses in the previous session dragged the major averages to their lowest closing levels in about two months.
Traders may also have reacted positively to news that lawmakers ended a brief government shutdown with a bill raising spending caps and funding the government until March 23rd.
But the day's volatility came amid lingering concerns about the outlook for interest rates. Recent signs of rising inflation have led to worries that the Federal Reserve may raise rates faster than anticipated.
Crude oil futures plunged Friday, entering correction mode. Rising U.S. production, new oil fields in Nigeria and Angola and a stronger dollar have dented oil prices badly in recent weeks. March WTI oil fell $1.95 or 3.2 percent to $59.20/bbl, the lowest since Dec. 22. Oil prices dropped 10 percent last week.
Closer to home, Singapore will release December figures for retail sales later today. In November, retail sales were up 5.1 percent on month and 5.3 percent on year.
by RTT Staff Writer
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