Singapore shares are expected to gain next week on expectations the peace dividend from a UN-brokered cease-fire in Lebanon would limit further oil price increases, dealers said.
The cease-fire between the Israeli army and the Shiite militia group Hezbollah has held so far as the United Nations moves to assemble a credible peacekeeping force to be deployed in southern Lebanon.
"With the Middle East tension and oil prices subsiding, investors are getting more confident," a dealer with a European brokerage said.
He added this upward trend should continue next week given that some valuations have come down to more reasonable levels.
Crude oil prices fell to their lowest in nearly two months Thursday as no cease-fire violations in Lebanon were reported.
Prices however rebounded slightly Friday on fears oil-rich Iran will defy a UN deadline later this month to end its uranium enrichment programme - underscoring the volatility of the market.
New York's main contract light sweet crude for September delivery was at 70.74 in late Asian hours Friday, while Brent North Sea crude for October delivery was at 72.19 dollars.
Both benchmark contracts are currently well below their record peaks of more than 78 dollars a barrel.
For the week ending August 18, the Straits Times Index climbed 32.9 points, or 1.34 percent, to 2,483.53.
Average daily volume totalled 1.04 billion shares valued at 1.06 billion Singapore dollars (667 million US), compared with 858.68 million shares worth 900.31 Singapore dollars the previous week.
Comments
Comments are closed.