The Singapore stock market headed south again on Tuesday, one day after ending the two-day losing streak in which it had dropped almost 40 points or 1.2 percent. The Straits Times Index now rests just beneath the 3,255-point plateau although it's likely to bounce higher again on Wednesday.
The global forecast for the Asian markets is cautiously optimistic, with bargain hunting expected after days of heavy selling on recession fears. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.
The STI finished slightly lower on Tuesday as losses from the industrials were mitigated by support from the financials and a mixed picture from the property sector.
For the day, the index dipped 2.64 points or 0.08 percent to finish at 3,253.97 after trading between 3,237.72 and 3,262.37.
Among the actives, Ascendas REIT sank 1.12 percent, while CapitaLand Integrated Commercial Trust shed 1.00 percent, CapitaLand Investment dipped 0.55 percent, Comfort DelGro climbed 0.81 percent, DBS Group added 0.29 percent, Emperador spiked 2.04 percent, Genting Singapore declined 1.59 percent, Hongkong Land surged 3.06 percent, Keppel Corp slumped 1.23 percent, Mapletree Pan Asia Commercial Trust skidded 1.22 percent, Mapletree Industrial Trust lost 0.91 percent, Mapletree Logistics Trust tumbled 1.89 percent, Oversea-Chinese Banking Corporation advanced 0.66 percent, SATS surrendered 1.75 percent, SembCorp Industries soared 2.71 percent, Singapore Technologies Engineering dropped 1.18 percent, SingTel retreated 1.54 percent, Thai Beverage jumped 1.48 percent, United Overseas Bank collected 0.26 percent, Wilmar International fell 0.72 percent, Yangzijiang Financial stumbled 1.43 percent and Yangzijiang Shipbuilding and City Developments were unchanged.
The lead from Wall Street suggests mild upside as the major averages opened lower, bounced back and forth across the unchanged line and finally moved into positive territory for good in the afternoon.
The Dow advanced 92.20 points or 0.28 percent to finish at 32,848,74, while the NASDAQ perked 1.08 points or 0.01 percent to close at 10,547.11 and the S&P 500 rose 3.96 points or 0.10 percent to end at 3,821.62.
The modest strength on Wall Street came as traders looked to pick up stocks at reduced levels following recent weakness. The major averages had closed lower for four consecutive session, ending Monday's trading at their lowest closing levels in over a month.
Buying interest remained somewhat subdued, however, with some traders reluctant to get back into the markets amid lingering concerns the Federal Reserve's aggressive interest rate hikes will tip the economy into a recession.
In economic news, the Commerce Department reported a decrease in new residential construction and building permits in the U.S. in November.
Crude oil bounced higher on Tuesday thanks to an improving demand outlook and a slightly weaker dollar. West Texas Intermediate rose $0.83 or 1.10 percent to $76.02 per barrel.
