Singapore share prices closed 0.62 percent higher on Wednesday boosted by gains in property and oil and gas plays, dealers said. They said increasing investor optimism towards the economy and Wall Street's strong showing overnight gave sentiment a boost.
The Straits Times Index rose 14.77 points at 2,384.14 on volume of 1.25 billion shares work 1.21 billion Singapore dollars (734 million US). Gainers led decliners 416 to 191, with 527 shares unchanged.
"The overall sentiment in the market is pretty positive," a dealer at a local brokerage said, adding that much of the interest is focussed on property stocks and oil and gas-related plays.
Dealers said the interest is likely to pick up further as 2005 corporate earnings results start to flow in, beginning with ST Engineering next Monday.
"With the upcoming corporate results season, the buying momentum should accelerate," Kim Eng Securities unit Kelive said in a note.
"Hopes that the Singapore economy will perform strongly again this year coupled with the prospect of an election-driven rally should fuel gains in the benchmark index," Kelive said.
Property stocks closed mostly higher on hopes that residential property prices will rise further this year after gaining 3.8 percent in 2005. CIMB-GK Research, which is keeping its "overweight" rating on the sector, expects property prices to increase by a further five to 10 percent in 2006.
Keppel Land jumped 0.08 to 3.86 dollars and City Developments gained 0.25 to 9.05 but CapitaLand was flat at 3.54.
Oil and gas plays were also higher amid positive sentiment towards the sector. Analysts said the strong flow of orders for oil drilling rigs is likely to continue this year.
Keppel Corp was up 0.40 at 11.70 while SembCorp Marine rose 0.08 to 2.95.
Among blue chips, Singapore Airlines rose 0.10 to 12.80, Singapore Telecom gained 0.02 to 2.65 and ST Engineering added 0.02 to 2.97. Singapore Press Holdings fell 0.04 to 4.32.
In the techs, Chartered Semiconductor gained 0.02 to 1.35, Creative Technology fell 0.10 to 13.70, Venture advanced 0.30 to 14.50 and STATS ChipPAC was flat at 1.16.
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