Win Streak Likely To Continue For Singapore Shares

(RTTNews) - The Singapore stock market has moved higher in back-to-back sessions, gathering more than 50 points or 1.5 percent along the way. The Straits Times Index now sits just above the 3,440-point plateau and it's expected to add to its winnings again on Monday.

The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European markets finished slightly lower and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The STI finished sharply higher on Friday following gains from the financial shares, property stocks and industrial issues.

For the day, the index advanced 38.46 points or 1.13 percent to finish at the daily high of 3,442.93 after moving as low as 3,406.31.

Among the actives, CapitaLand Investment strengthened 1.12 percent, while Comfort DelGro improved 0.71 percent, DBS Group rallied 1.54 percent, Genting Singapore added 0.62 percent, Hongkong Land and SATS both fell 0.27 percent, Keppel Ltd accelerated 1.98 percent, Mapletree Pan Asia Commercial Trust and Mapletree Logistics Trust both advanced 0.74 percent, Mapletree Industrial Trust and Oversea-Chinese Banking Corporation both climbed 0.83 percent, Seatrium Limited spiked 2.07 percent, SembCorp Industries surged 4.45 percent, Singapore Technologies Engineering gained 0.23 percent, SingTel soared 3.64 percent, Wilmar International increased 0.64 percent, Yangzijiang Financial and Venture Corporation both jumped 1.45 percent and Yangzijiang Shipbuilding, Thai Beverage, Keppel DC REIT, Emperador, City Developments and CapitaLand Integrated Commercial Trust were unchanged.

The lead from Wall Street is solid as the major averages opened higher on Friday, faded midday but rallied going into the close.

The Dow climbed 228.03 points or 0.55 percent to finish at a fresh record 41,563.08, while the NASDAQ spiked 197.20 points or 1.13 percent to end at 17,713.62 and the S&P 500 gained 56.44 points or 1.01 percent to close at 5,648.40. For the week, the NASDAQ shed 0.9 percent, the Dow added 0.9 percent and the S&P rose 0.2 percent.

The higher close on Wall Street followed the Commerce Department report on U.S. consumer price inflation that is said to be preferred by the Federal Reserve. The report showed consumer prices increased in line with estimates in July, while the annual rate of price growth was unexpectedly flat.

While the data has reinforced expectations of an interest rate cut by the Fed this month, traders expressed uncertainty about the pace of rate cuts, leading to some volatility in the markets.

According to CME Group's FedWatch Tool, there is a 69.5 percent chance of a quarter-point rate cut next month and a 30.5 percent chance of a half-point rate cut.

Crude oil showed a significant move to the downside on Friday on reports that OPEC is set to proceed with a planned oil output hike from October. West Texas Intermediate crude for October delivery plunged $2.36 or 3.1 percent to $73.55 a barrel.