The Singapore stock market has finished lower in three consecutive trading days, sinking more than 100 points or 3.3 percent along the way. The Straits Times Index now sits just beneath the 3,150-point plateau and it figures to at least open under pressure again on Wednesday.
The global forecast for the Asian markets suggests volatility amid the ongoing Russian invasion of Ukraine and the resulting surge in crude oil prices. The European markets were mixed and flat and the U.S. markets were down and the Asian bourses figure to split the difference.
The STI finished sharply lower on Tuesday following losses from the financial shares, property stocks and industrial issues.
For the day, the index retreated 38.96 points or 1.22 percent to finish at 3,148.86 after trading between 3,128.06 and 3,182.35. Volume was 1.93 billion shares worth 1.95 billion Singapore dollars. There were 390 decliners and 164 gainers.
Among the actives, Ascendas REIT and City Developments both sank 0.71 percent, while
Comfort DelGro advanced 0.74 percent, Dairy Farm International skidded 1.22 percent, DBS Group tanked 2.13 percent, Genting Singapore added 0.66 percent, Hongkong Land tumbled 2.10 percent, Keppel Corp rose 0.17 percent, Mapletree Commercial Trust slumped 1.10 percent, Mapletree Logistics Trust declined 1.68 percent, Oversea-Chinese Banking Corporation retreated 1.39 percent, SATS jumped 1.84 percent, SembCorp Industries stumbled 1.11 percent, Singapore Airlines surrendered 2.01 percent, Singapore Exchange and Wilmar International both lost 0.21 percent, Singapore Technologies Engineering gained 0.50 percent, United Overseas Bank plunged 2.92 percent, Yangzijiang Shipbuilding plummeted 3.45 percent and CapitaLand Integrated Commercial Trust, Singapore Press Holdings, SingTel and Thai Beverage were unchanged.
The lead from Wall Street ends up negative as the major averages opened slightly higher on Tuesday but then bounced back and forth across the unchanged line, finally ending with modest losses.
The Dow dropped 184.74 points or 0.56 percent to finish at 32,632.64, while the NASDAQ lost 35.41 points or 0.28 percent to close at 12,795.55 and the S&P 500 shed 30.39 points or 0.72 percent to end at 4,170.70.
The volatility on Wall Street came as crude oil prices continued to skyrocket as President Joe Biden officially announced a U.S. ban on the import of Russian oil, liquefied natural gas, and coal in response to Russia's unprovoked invasion of Ukraine.
Crude oil prices climbed higher on Tuesday amid concerns about global oil supply after Biden announced a ban on import of Russian energy products. West Texas Intermediate Crude oil futures for April ended higher by $4.30 or 3.6 percent at $123.70 a barrel.
Gas stations are raising prices along with the spike in oil futures, as AAA said the average price for a gallon of gas has reached a record high of $4.173. The national average gas price is up by nearly $0.11 a gallon from just yesterday and up more than $0.55 a gallon from a week ago.
The higher gas prices are likely to weigh on consumer spending in other areas, potentially leading to an economic slowdown even as the Federal Reserve prepares to begin raising interest rates.
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