Singapore share prices closed 0.35 percent higher on Tuesday as investors shrugged off oil prices hitting fresh record highs and looked to underlying economic strength, dealers said.
They said investors were focusing on robust economic prospects this year, underpinned by government data released Monday showing Singapore's main exports in March rose 16.8 percent from a year earlier.
The Straits Times index climbed 8.91 points to 2,559.25. Volume totalled 2.44 billion shares valued at 1.46 billion Singapore dollars (916 million US).
Gainers outpaced losers 424 to 220 with 554 shares unchanged. "Sentiment in the broad market remained firm despite rising oil prices," a dealer with a local brokerage said.
"Unless oil prices are sustained at current levels, it may not have a significant impact on economic growth and corporate earnings."
Crude futures spiked to a new record high of 70.88 dollars a barrel in electronic trade Tuesday, surpassing the 70.85 dollars set on August 30, 2005 after Hurricane Katrina savaged US oil production facilities in the Gulf of Mexico.
Analysts admit that higher oil prices could affect economic growth but said Asian economies are resilient enough to weather the impact. Oil and gas plays like Interra and Federal were boosted by the higher oil prices. Interra rose 0.115 to 0.6, while Federal climbed 0.045 to 0.69. Singapore Petroleum advanced 0.05 to 5.80 and China Aviation Oil added 0.01 to 1.30. Oil-sensitive transportation stocks closed flat to higher. Singapore Airlines (SIA) rose 0.10 at 13.70, while Neptune Orient Lines held steady at 2.17.
Blue chips closed flat to lower with Singapore Telecommunications and Singapore Press Holdings steady at 2.670 and 4.380, respectively. Venture Corp dropped 0.20 to 12.30.
Technology stocks closed mixed with ST Engineering flat at 3.30, STATS ChipPac adding 0.01 to 1.250, Creative Technology losing 0.10 to 10.00 and Chartered Semiconducter gaining 0.01 to 1.58.
Property stock CapitaLand was flat at 4.90, City Developments lost 0.10 to 10.30 and Keppel Land rose 0.06 to 4.50.
Among banking stocks, Oversea-Chinese Banking Corp added 0.05 to 6.75, United Overseas Bank and DBS were flat at 15.80 and 16.70, respectively.
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