RTTNews - The Singapore stock market saw on Monday an end to the winning streak in which it had collected nearly 50 points or 1.9 percent in the process. The Straits Times Index fell back below support at 2,270 points, although investors are looking for the market to move right back above that level at the opening of trade on Tuesday.
The global forecast for the Asian markets is optimistic, with many of the regional bourses poised for a recovery after being mired in lengthy and costly losing streaks. Financials are tipped to be a source of strength, although the gains could be slightly limited by continued weakness from the oil companies. The European and U.S. markets ended sharply higher as earnings season continues, and the Asian markets are also predicted to put on significant gains.
The STI finished sharply lower on Monday, thanks to heavy losses among the financials, properties and telecoms.
For the day, the index dropped 41.34 points or 1.79 percent to close at 2,266.64 after trading between 2,258.72 and 2,313.44. Volume was 1.05 billion shares worth 0.86 billion Singapore dollars.
Among the decliners, CapitaLand dropped 2.4 percent, while Singapore Telecommunications lost 1.3 percent, DBS Group shed 1.9 percent and Oversea-Chinese Banking Corp was down 2.9 percent.
The lead from Wall Street is broadly positive as stocks rallied amid some positive analyst comments on the financial sector after showing a lack of direction in early trading on Monday. The major averages finished in positive territory by substantial margins, staging their strongest performance of the month.
Financial stocks led the way higher on the heels of positive comments from influential analyst Meredith Whitney, who raised her rating on Goldman Sachs (GS) to Buy from Neutral. Whitney also said Bank of America (BAC) could provide value for investors.
On the earnings front, railroad operator CSX Corp. (CSX) is reported second quarter earnings after the close of trading, reporting earnings of $0.78 per share compared to $0.93 per share last year. Excluding the impact of discontinued operations, the company earned $0.72 per share.
Meanwhile, Novellus Systems (NVLS) reported an adjusted second-quarter loss of $39.3 million or $0.41 per share versus net income of $6.2 million or $0.06 per share in the year ago quarter. Wall Street analysts expected the company to report a loss of $0.38 per share for the quarter.
The major averages saw some further upside going into the close, ending the session at their best levels of the day. The Dow closed up by 185.16 points or 2.3 percent at 8,331.68, the NASDAQ moved up by 37.18 points or 2.1 percent to 1,793.21 and the S&P 500 rose by 21.92 points or 2.5 percent to 901.05.
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