RTTNews - The winning streak has stretched to three sessions for the Singapore stock market, which has surged more than 120 points or 5 percent on its way to a fresh 10-month closing high. The Straits Times Index finished above the 2,575-point plateau, and now analysts are expecting the market to track modestly higher by the opening of trade on Tuesday.
The global forecast for the Asian bourses again provides little in the way of guidance, with financial and property stocks expected to post mild gains and nudge the markets into positive territory. Some better than expected economic news out of the United States could add to sentiment, although it also may wan on mixed corporate results. The European markets were modestly higher and the U.S. bourses tipped slightly higher, and the Asian markets are predicted also to move slightly higher.
The STI finished sharply higher on Monday, led by gains among the financials. The telecom stocks also ended higher, as did the airlines, while the property sector ended lower in succumbing to profit taking.
For the day, the index surged 43.23 points or 1.71 percent to close at 2,576.66 after trading between 2,541.82 and 2,585.27. Volume was 3.19 billion shares worth 2.04 billion Singapore dollars. There were 419 gainers and 166 decliners, with 762 stocks finishing unchanged.
Among the actives, DBS Group, Oversea-Chinese Banking Corp, United Overseas Bank, Singapore Telecom, Singapore Airlines and Singapore Press Holdings all finished higher, while CapitaLand and Keppel Corp ended with modest declines.
The lead from Wall Street is flat with perhaps a touch of upside as stocks staged a modest rally in late session trading after experiencing a largely lackluster session on Monday. The major averages were all able to finish in positive territory by mild margins on another day marred by low volume.
On the economic front, the Commerce Department released a report showing that new home sales in the month of June increased by much more than expected. New home sales jumped by 11 percent, the sharpest increase in nearly nine years.
The Commerce Department showed that new home sales rose to an annual rate of 384,000 in June from the revised May rate of 346,000. Economists had expected sales to rise to 352,000 from the 342,000 originally reported for the previous month.
The stronger than expected sales growth came amid a pullback in prices, with the median sales price of new houses sold in June falling 5.8 percent to $206,200 from $219,000 in the previous month. The median sales price had increased for two consecutive months.
In earnings news, RadioShack (RSH), Tellabs (TLAB) and Corning (GLW) reported earnings that beat Wall Street estimates, while Verizon (VZ) and Honeywell (HON) reported results that were in-line with expectations. Aetna (AET), however, was one of the major firms whose quarterly earnings fell short of estimates.
The major averages showed a notable move to the upside going into the close, ending the session just above the unchanged line. The Dow closed up by 15.27 points or 0.2 percent at 9,108.51, the NASDAQ climbed by 1.93 points or 0.1 percent to 1,967.89 and the S&P 500 rose by 2.92 points or 0.3 percent at 982.18.
For comments and feedback: contact firstname.lastname@example.org