It was a case of another day, another gain on the local market despite Wall Street going into decline overnight on concerns over upcoming jobs data in the United States.
The better mood here sent the Straits Times Index (STI) up 7.75 points, or 0.2 per cent, to 3,318.87 on Wednesday, its fourth straight day of increase. In the broader market, losers pipped gainers 185 to 183 on trade of 1.36 billion shares worth $1.16 billion.
DBS Group Research pointed out that uncertainties over inflation, a global economic slowdown and tighter margins for bank loans here could keep the local rebound in check.
Elsewhere, key gauges across the region were mixed following the modest declines on Wall Street. Bourses in Japan, Hong Kong and Malaysia headed south while shares in Taiwan, China, South Korea and Australia posted gains.
Analysts expect to see some caution in markets ahead of the release of US non-farm payrolls data on Friday.
Kohle Capital Markets chief market analyst Tim Waterer noted: “Right now, the market is awaiting clues as to whether there will be another 25 basis points of tightening to come from the Fed – and the state of the US labour market could have a big say.”
Any weakening in the labour market could prompt rate cuts by the US Federal Reserve within the year over concerns the economy may be going into reverse.
On the Singapore bourse, Marco Polo Marine fell 4.4 per cent to 4.4 cents. Phillip Securities Research deemed the stock a technical buy at these levels.
CapitaLand Investment gained 0.3 per cent to $3.79. The company said earlier this week that it had entered into a forward purchase agreement to acquire six multi-family – or rental housing – assets in central Osaka in Japan for $141.4 million.
The global real estate investment manager also recently made two key appointments for its operations in Japan and China to accelerate growth in these markets. – The Business Times
