Singapore Shares: Support Expected At 3,700 Points

(RTTNews) - The Singapore stock market has moved lower in back-to-back sessions, dropping almost 35 points or 0.9 percent along the way. The Straits Times Index now sits just above the 3,710-point plateau although it's expected to stop the bleeding on Wednesday.

The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. 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 modestly lower on Tuesday following losses from the financials and industrials, while the properties and trusts were mixed.

For the day, the index sank 19.00 points or 0.51 percent to finish at 3,712.39 after trading between 3,705.05 and 3,728.81.

Among the actives, CapitaLand Integrated Commercial Trust fell 0.51 percent, while CapitaLand Investment tanked 3.55 percent, City Developments slumped 1.14 percent, Comfort DelGro sank 0.68 percent, DBS Group stumbled 1.28 percent, Emperador declined 1.20 percent, Genting Singapore advanced 0.65 percent, Hongkong Land gained 0.43 percent, Keppel DC REIT plummeted 5.46 percent, Keppel Ltd slid 0.45 percent, Mapletree Industrial Trust added 0.44 percent, Mapletree Logistics Trust and Jardine Matheson both dropped 0.78 percent, Oversea-Chinese Banking Corporation lost 0.56 percent, SATS skidded 1.04 percent, Seatrium Limited rallied 1.04 percent, SembCorp Industries tumbled 1.34 percent, Singapore Technologies Engineering and SingTel both shed 0.66 percent, Thai Beverage jumped 1.89 percent, Wilmar International retreated 1.29 percent, Yangzijiang Shipbuilding plunged 3.80 percent and Mapletree Pan Asia Commercial Trust, Yangzijiang Financial, Frasers Centrepoint Trust and Frasers Logistics & Commercial Trust were unchanged.

The lead from Wall Street is positive as the major averages opened mixed on Tuesday but trended higher throughout the day and all finished in the green.

The Dow climbed 123.74 points or 0.28 percent to finish at a record 44,860.31, while the NASDAQ jumped 119.46 points or 0.63 percent to close at 19,174.30 and the S&P 500 improved 34.28 points or 0.57 percent to end at 6,021.63, also a record.

The higher close by the major averages came as the minutes of the Federal Reserve's latest monetary policy meeting revealed officials believe it will be appropriate to "gradually" lower interest rates.

The minutes said officials feel a gradual approach to lowering rates to a more neutral stance will be appropriate if economic data come in "about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment."

Oil prices drifted lower on Tuesday following reports Israel and Hezbollah are closer to reaching a cease-fire agreement within the next few days. West Texas Intermediate Crude oil futures for January closed down $0.17 at $68.77 a barrel.