FX.co ★ Singapore Shares Expected To Remain Rangebound On Monday

The Singapore stock market experienced a positive rebound on Friday, recovering from a previous session that had disrupted a two-day winning streak which added over 50 points or a 1.3% increase. The Straits Times Index now positions itself slightly above the 3,770-mark, although Monday might bring renewed selling pressures.

Globally, the forecast for Asian markets appears mixed to downward, particularly in this short trading week due to holidays, with technology stocks expected to weigh heavily. While European markets enjoyed gains, U.S. markets faced declines, setting a precedent that Asian markets are likely to mirror.

On Friday, the STI made modest gains, buoyed by financials, industrial stocks, and Real Estate Investment Trusts (REITs). The index climbed 10.18 points, equating to a 0.27% increase, closing at 3,771.63 after fluctuating between 3,762.93 and 3,785.21 during the day's trading.

Significant movements among active stocks included CapitaLand Integrated Commercial Trust, which rose by 0.52%. DBS Group saw a slight increase of 0.02%, whereas Emperador fell by 1.19%. Genting Singapore strengthened by 0.66%, with Hongkong Land and Keppel DC REIT both adding 0.46%. Keppel Ltd and Singapore Technologies Engineering experienced gains of 0.88%, Mapletree Pan Asia Commercial Trust increased by 0.83%, and Mapletree Industrial Trust advanced by 0.45%. Oversea-Chinese Banking Corporation gained 0.18%, SATS rose by 0.55%, Seatrium Limited climbed 0.49%, and SembCorp Industries by 0.74%. SingTel marked an increase of 0.32%, while Thai Beverage and UOL Group decreased by 0.90% and 0.19%, respectively. Conversely, Wilmar International surged by 0.99%, Yangzijiang Financial escalated by 2.50%, and Yangzijiang Shipbuilding improved by 0.34%. CapitaLand Investment, City Developments, Comfort DelGro, Mapletree Logistics Trust, and DFI Retail Group remained unchanged.

In contrast, Wall Street reported a negative lead as major averages opened low and maintained that downward trajectory, closing close to session lows. The Dow Jones Industrial Average dropped significantly by 333.59 points, equating to a 0.77% decrease, ending at 42,992.21. The NASDAQ saw a 298.37 point or 1.49% slump, closing at 19,722.03, while the S&P 500 fell 66.75 points or 1.11%, settling at 5,970.84. Despite these declines, the Dow managed a 1.4% gain for the week, with both the NASDAQ and S&P 500 also advancing by 1.5%.

This week's trading volumes may have been impacted by lighter investor presence, as many were away for the holidays between Christmas and New Year's.

Economically, the U.S. reported that retail inventories, excluding autos, rose by 0.6% month-over-month in November, following a revised increase of 0.3% from the previous month, according to preliminary estimates.

Oil prices moved upward on Friday after data indicated a significant drop in U.S. crude inventories the preceding week, alongside ongoing geopolitical tensions between Russia and Ukraine which sustained elevated prices. West Texas Intermediate Crude oil futures for February settled at $70.60 per barrel, marking a 1.4% gain.