The Singapore stock market hit Friday's Labor Day holiday on a roll, up in two straight sessions while adding more than 110 points or 5.7 percent in the process. The Straits Times Index has broken through resistance at 1,900 points, and now investors are expecting further upside mobility when the market resumes trade on Monday.
The Asian markets draw a fairly positive if lukewarm global forecast as many of the bourses return to action following Friday's holiday. Some economic news out of the United States was not as bad as expected, as were some corporate results. Most of Europe was closed, but for a flat performance from London's FTSE, while the U.S. bourses ended slightly higher - and the Asian markets are also expected to move higher on Monday.
The STI finished sharply higher on Thursday, thanks to significant gains among the financial shares and the property stocks.
For the day, the index soared 70.71 points or 3.82 percent to close at the daily high if 1,920.28 after dipping as low as 1,880.63. Volume was 2.012 billion shares worth 1,743.5 million Singapore dollars, with gainers outnumbering decliners 349 to 150.
Among the gainers, DBS Group was up 4.4 percent, while United Overseas Bank gained 4.5 percent, Oversea-Chinese Banking Corp added 7.3 percent, CapitaLand gained 7.8 percent, City Developments finished up 11.3 percent and Singapore Exchange was up 5 percent.
The lead from Wall Street is cautiously optimistic as stocks showed a lack of direction throughout the trading day on Friday, with the major averages bouncing back and forth across the unchanged line before ending the day modestly higher. The lackluster performance came as traders digested some mixed earnings and economic news.
On the economic front, the Institute for Supply Management released its report on manufacturing activity in the month of April, showing that activity continued to contract for the month but at a much slower than expected pace. The ISM said its index of activity in the sector rose to 40.1 in April from 36.3 in March, although a reading below 50 indicates a continued contraction in the sector. Economists had been expecting a more modest increase to a reading of 38.4.
Separately, the Reuters/University of Michigan's consumer sentiment index for the month of April was unexpectedly upwardly revised to a reading of 65.1 from the previously reported reading of 61.9. The Commerce Department also released its report on factory orders in the month of March, showing that orders fell by a bigger than expected 0.9 percent following a downwardly revised 0.7 percent increase in February.
In earnings news, Chevron (CVX) closed notably higher after the oil giant reported first quarter earnings that fell sharply year-over-year but came in better than analysts had expected. Shares of Chevron ended the day up 1.2 percent. Chevron reported first quarter earnings of $1.84 billion or $0.92 per share compared to $5.17 billion or $2.48 per share in the year-ago quarter. Analysts had been expecting the company to report earnings of $0.81 per share.
Meanwhile, MetLife (MET) saw considerable weakness on the day after reporting a first quarter loss of $574 million or $0.71 per share compared with a profit of $615 million or $0.84 per share in the same quarter last year. Shares of MetLife closed down 7.7 percent.
The major averages showed a notable upward move going into the close, ending the day in positive territory. The Dow closed up 44.29 points or 0.5 percent at 8,212.41, the NASDAQ closed up 1.90 points or 0.1 percent at 1,719.20 and the S&P 500 closed up 4.71 points or 0.5 percent at 877.52. With the gains on Friday, the major averages all closed higher for the week, with the NASDAQ setting a nearly six-month closing high. While the NASDAQ rose 1.5 percent for the week, the Dow and the S&P 500 posted weekly gains of 1.7 percent and 1.3 percent, respectively.
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