The Singapore stock market on Friday wrote a finish to the modest two-day winning streak in which it had collected more than 20 points or 0.6 percent. The Straits Times Index ended just above the 3,215-point plateau, and now investors are looking at another rangebound performance when the market kicks off trade on Monday.
The global forecast for the Asian markets suggests mixed and flat trade, with investors likely reluctant to take positions ahead of key earnings news this week. Adding to the cautious sentiment, data suggests that additional stimulus may not be forthcoming in China or Europe. The European markets were up on Friday and the U.S. bourses were mixed but little changed – and the Asian markets are tipped to follow the latter lead.
The STI finished modestly lower on weakness from the financial shares, plantations and property stocks.
For the day, the index lost 9.75 points or 0.30 percent to finish at 3,216.50 after trading between 3,209.21 and 3,229.15.
Among the actives, CapitaLand dropped 1.27 percent, while DBS Group Holdings shed 0.88 percent, United Overseas Bank dipped 0.77 percent, Golden Agri-Resources plunged 3.03 percent, Wilmar International lost 1.10 percent, Olam International fell 0.62 percent, SingTel added 0.59 percent and SembCorp jumped 0.94 percent.
The lead from Wall Street offers little guidance as stocks ended Friday’s trading roughly flat after showing a lack of direction throughout the session. The choppy trading came as traders seemed reluctant to make any significant moves ahead of key earnings news this week.
Traders also expressed some uncertainty about the outlook for the markets after recent gains lifted the S&P 500 to a five-year closing high on Thursday. They also seemed to take a wait-and-see approach as more big-name companies release their quarterly results in the coming weeks.
Mixed news from overseas also contributed to the choppy trading. While word of a new $116 billion stimulus package in Japan generated some positive sentiment, a report from China showing accelerated inflation suggested that the Chinese may not provide further stimulus.
Traders largely shrugged off a report from the Commerce Department showing that the U.S. trade deficit widened to $48.7 billion in November from a revised $42.1 billion in October, with a jump in imports more than offsetting an increase in exports. Economists had expected the deficit to narrow to $41.1 billion.
Among individual stocks, shares of Wells Fargo (WFC) were down even though financial services giant reported fourth quarter earnings and revenues that exceeded estimates. On the other hand, shares of Infosys (INFY) surged after the software services provider reported better than expected third quarter results and raised its full-year revenue guidance.
The major U.S. averages were mixed but little changed as the S&P 500 eased 0.07 points or less than a tenth of a percent to finish at 1,472.05. The Dow added 17.21 points or 0.1 percent to end at 13,488.43, while the NASDAQ crept up 3.87 points or 0.1 percent to close at 3,125.63. For the week, the NASDAQ advanced 0.8 percent, while the Dow and the S&P 500 both rose 0.4 percent.
by RTT Staff Writer
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