Singapore Market's Three-Day Decline May Reverse on Positive Global Sentiment

The Singapore stock market has experienced a challenging stretch, sliding downward across three consecutive trading sessions. The Straits Times Index, which currently hovers around the 4,570-point threshold, shed approximately 20 points representing a 0.4 percent pullback. Sentiment appears poised for improvement as traders anticipate a potentially supportive backdrop from international developments.

Global Markets Provide Momentum for Recovery

The catalyst for renewed optimism stems from shifting expectations around monetary policy. Fresh inflation data released by the U.S. Labor Department surprised to the downside, reigniting hopes that central banks will persist with interest rate reductions in the coming year. This narrative has resonated across multiple asset classes, with both European and American equities finishing in positive territory on Friday. Given the typical flow-through effects observed in Asian markets, the Singapore stock market figures to benefit from this constructive environment.

Thursday’s Session: Mixed Signals Amid Broad Consolidation

On Thursday specifically, the Straits Times Index declined 4.87 points or 0.11 percent to settle at 4,570.61, oscillating within a narrow 21-point range between 4,561.14 and 4,582.15. The session revealed a bifurcated performance landscape. While industrial stocks dragged on the broader gauge, trust-related securities provided offsetting support. Banking and property sectors navigated choppy conditions without establishing clear directional momentum.

Sector and Stock Highlights

Among the most actively traded securities, performance remained scattered. Real estate trusts displayed resilience, with CapitaLand Ascendas REIT climbing 0.36 percent and CapitaLand Integrated Commercial Trust advancing 0.43 percent. Conversely, CapitaLand Investment retreated 0.38 percent. City Developments extended gains of 0.66 percent while Hongkong Land stumbled 1.71 percent.

Financial heavyweights exhibited weakness, with DBS Group easing 0.22 percent and Oversea-Chinese Banking Corporation collecting a modest 0.31 percent. United Overseas Bank managed to eke out a 0.20 percent gain, providing some stabilization in the banking sector.

Shipping and industrial plays showed mixed fortunes. Yangzijiang Shipbuilding tumbled 1.42 percent, while Yangzijiang Financial retreated 1.18 percent. However, Mapletree Logistics Trust rallied 0.78 percent, and Keppel Ltd declined only 0.40 percent. SembCorp Industries sank 0.51 percent amid broader sector pressures.

Other notable movements included SATS jumping 0.81 percent, DFI Retail Group surging 2.01 percent, Genting Singapore slumping 0.69 percent, Mapletree Pan Asia Commercial Trust expanding 0.69 percent, and Mapletree Industrial Trust adding 0.50 percent. SingTel posted a 0.44 percent loss while Wilmar International gathered 0.33 percent.

Wall Street Provides Tailwinds

The positive momentum originated from American markets, where major averages commenced Friday’s session on the upside and sustained those gains throughout the day. The Dow Jones climbed 65.88 points or 0.14 percent to 47,951.85, while the NASDAQ advanced 313.04 points or 1.38 percent to 23,006.36. The S&P 500 gained 53.33 points or 0.79 percent, closing at 6,774.76.

The strength reflected optimism following the tamer-than-expected consumer price growth figures, which bolster expectations for continued Federal Reserve accommodation into 2025. Additionally, jobless claims data aligned with forecasts, suggesting labor market resilience without overheating.

Commodity Markets React to Geopolitical Factors

Energy markets continued their upward trajectory on Friday, driven by persistent geopolitical tensions affecting Venezuela and Russia. West Texas Intermediate crude for January delivery edged higher by $0.13 or 0.2 percent, settling at $56.07 per barrel, reflecting ongoing supply uncertainties in the global marketplace.