Additional Support Expected For Singapore Stock Market

(RTTNews) - The Singapore stock market has moved higher now in back-to-back trading days, gathering almost 20 points or 0.7 percent along the way. The Straits Times Index now rests just above the 2,860-point plateau, and the market may extend its gains on Thursday.

The global forecast for the Asian markets is broadly positive thanks to a sharp rebound in the price of crude oil - while window dressing ahead of the year's end also may play a role. The European and U.S. markets were firmly higher and the Asian markets figure to follow suit.

The STI finished modestly higher on Wednesday following gains from the financial shares, plantation stocks and industrial issues.

For the day, the index advanced 10.68 points or 0.37 percent to finish at 2,863.65 after trading between 2,858.66 and 2,872.00. Volume was 1.26 billion shares worth 709.1 million Singapore dollars. There were 250 gainers and 153 decliners.

Among the actives, Keppel Corp added 0.62 percent, while Yangzijiang Shipbuilding spiked 2.83 percent, City Developments shed 0.39 percent, DBS Group climbed 1.16 percent, United Overseas Bank collected 0.78 percent, Wilmar International advanced 2.08 percent, Noble Group surged 4.55 percent and Thai Beverage skidded 1.46 percent.

The lead from Wall Street is firm as stocks moved higher on Wednesday, fueled by a gain in the energy sector. The gains extended a recent upward move, with the major averages closing higher for the third straight day.

The Dow jumped 185.34 points or 1.1 percent to 17,602.61, while the NASDAQ advanced 44.82 points or 0.9 percent to 5,045.93 and the S&P 500 surged 25.32 points or 1.2 percent to 2,064.29.

The strength followed a substantial increase by the price of crude oil, which climbed further off its recent lows after an unexpected sharp decline in inventories.

Traders were also reacting to a slew of U.S. economic data, including a report from the Commerce Department showing that new home sales increased for the second consecutive month in November. A separate report from the University of Michigan said that consumer sentiment improved by more than estimated in December.

Also, the Commerce Department noted that personal income and spending rose at the same rate in November, while a separate report showed that durable goods orders were virtually unchanged in November after surging 2.9 percent in October.

Closer to home, Singapore will release November numbers for industrial production later today, with forecasts suggesting an increase of 0.7 percent on month and a decline of 3.0 percent on year. That follows the 2.5 percent monthly increase and the 5.4 percent yearly decline in October.