Singapore shares close 1.04 percent higher

Singapore share prices closed 1.04 percent higher on Tuesday in a half-day session on gains in blue chip stocks ahead of the Lunar New Year holidays, dealers said. They said investor sentiment was robust among smaller retail investors, with hopes high for "favourable" measures when the government announces its Budget for the year to March 2006 next week. The Straits Times Index rose 22.06 points to 2,140.16, while the broader All Singapore Equities Index was up 4.20 points to 553.69.
Volume was 350.49 million shares worth 357 million Singapore dollars (218 US), compared with 530 million shares valued at 486 million Singapore dollars during Monday's full-day session.
Gainers led decliners 245 to 122, with 615 stocks unchanged.
Financial markets in Singapore will be closed Wednesday and Thursday due to the Lunar New Year celebrations. They will reopen on Friday.
"The blue chips have led gains with the bank stocks rising due to expectations of good earnings results next week. The market may also be taking a lead from expectations of a favourable Budget announcement this year," Fraser-AMMB Research Director Najeeb Jarhom said.
The Singapore government will unveil its Budget for the year to March 2006 on Friday next week.
Jarhom said the lack of "main players" in the market on Tuesday showed that confidence among small investors was high despite the two-day public holiday which lies ahead.
Singapore Airlines closed higher, breaching the 12 Singapore dollar level for the first time in a year, amid a continued decline in crude oil prices and hopes the airline would pay higher dividends, dealers said.
The stock was up 20 Singapore cents to 12.10 Singapore dollars.
Among other blue chips, ST Engineering rose four cents to 2.41, Singapore Telecommunications added two cents to 2.59, while Singapore Press Holdings was flat at 4.46.
Banking stocks closed higher, with United Overseas Bank higher 30 cents to 14.30, Oversea-Chinese Banking Corp advancing 20 cents to 13.80 and DBS gaining 20 cents to 15.90.
Technology stocks were mostly unchanged. Venture Corp was flat at 16.30, Creative Technology steady at 22.00 and Chartered Semiconductor flat at 1.03.