Wednesday October 3, 01:36 AM
Singapore shares outlook - Lower on profit-taking, mixed Wall St performance
SINGAPORE (Thomson Financial) - Singapore shares are expected to open lower Wednesday on profit-taking, following tthe record-breaking run over the last few days.
Wall Street's mixed performance overnight amid renewed concerns
about the faltering US economy prompted by soft existing homes sales data, is also expected to weigh on sentiment.
On Tuesday, the Straits Times Index added 38.61 points or 1.0 percent to a record close of 3,793.83, after hitting an all-time intraday high of 3,829.52. The day's low was 3,788.25 points.
Gainers beat losers 533 to 418, with 725 stocks unchanged.
There were 4.1 billion shares traded valued at 4.4 billion Singapore dollars.
While concerns over the weakening US economy may dampen investor sentiment in the near-term, some investors believe that such a situation will help convince the Federal Reserve to cut rates further at their meeting later this month and this should help fuel a sustained market rally.
'The Federal Reserve is expected to cut US interest rates again in response to the weaker
growth outlook,' Henderson Global Investors said in a note to clients.
'Equity markets should be able to reach new highs if the US economy avoids a recession. Modest output growth and lower interest rates are usually a positive combination for equity markets,' it added.
(1 US dollar = 1.48 Singapore dollars)
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