Rally May Stall For Singapore Stock Market

The Singapore stock market has moved higher in two straight sessions, collecting more than 35 points or 0.7 percent along the way. The Straits Times Index now sits just beneath the 4,850-point plateau although it’s expected to open under water on Monday.

The global forecast for the Asian markets is negative on surging oil prices and the ongoing war in the Middle East. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The STI finished barely higher on Friday following mixed performances from the financial shares, property stocks and industrial issues.

For the day, the index rose 1.69 points or 0.03 percent to finish at 4,848.25 after trading between 4,808.69 and 4,862.49.

Among the actives, CapitaLand Integrated Commercial Trust fell 0.42 percent, while City Developments tumbled 1.93 percent, DBS Group was down 0.22 percent, DFI Retail Group retreated 1.36 percent, Genting Singapore spiked 1.47 percent, Hongkong Land surged 2.82 percent, Keppel DC REIT lost 0.43 percent, Keppel Ltd gained 0.41 percent, Mapletree Industrial Trust slumped 0.99 percent, Oversea-Chinese Banking Corporation eased 0.10 percent, SATS sank 0.54 percent, Seatrium Limited added 0.43 percent, SembCorp Industries improved 0.70 percent, Singapore Airlines shed 0.45 percent, Singapore Exchange rose 0.28 percent, Singapore Technologies Engineering rallied 1.01 percent, SingTel advanced 0.81 percent, Thai Beverage vaulted 1.14 percent, United Overseas Bank perked 0.17 percent, UOL Group stumbled 1.81 percent, Wilmar International soared 2.05 percent, Yangzijiang Shipbuilding dropped 0.71 percent and CapitaLand Investment, CapitaLand Ascendas REIT, Mapletree Pan Asia Commercial Trust and Mapletree Logistics Trust were unchanged.

The lead from Wall Street is weak as the major averages opened lower on Friday and remained under water throughout the trading day, ending near session lows.

The Dow dropped 453.19 points or 0.95 percent to finish at 47,501.55, while the NASDAQ tumbled 361.31 points or 1.59 percent to close at 22,387.68 and the S&P 500 sank 90.69 points or 1.33 percent to end at 6,740.02.

The sell-off on Wall Street came amid an extended surge by the price of crude oil. Crude oil has skyrocketed over the past week as the U.S.-Iran conflict spreads across the Middle East, leading to concerns about a global energy crisis.

Crude oil prices surged on Friday after Qatar warned of a production halt in the gulf as the ongoing U.S.-Israeli war against Iran has heavily disrupted energy supply routes through the Strait of Hormuz. West Texas Intermediate crude for April delivery was up $9.88 or 12.20 percent at $90.89 per barrel.

As the Middle East conflict entered its seventh day, Israel intensified air strikes on Iran, while the U.S. said its attacks on Iran are going to “surge dramatically.”

Negative sentiment was also generated by the watched Labor Department report showing U.S. unemployment unexpectedly in February. The Labor Department also said the unemployment rate ticked up to 4.4 percent in February from 4.3 percent in January.