Singapore share prices are expected to trade higher next week after concerns eased over the prospect the US central bank will raise interest rates further, dealers said.
They said that with the US Federal Reserve decision on interest rates out of the way and signs it will take a softer line on interest rates, investors should be more positive.
For the week ending June 30, the Straits Times Index closed up 92.36 points or 3.94 percent at 2,435.39.
Average daily volume totalled 937.65 million shares worth 907.09 million Singapore dollars (571.47 million US), up from 815.56 million shares valued at 728.48 million Singapore dollars the week before.
"If we don't have any more negative news on the interest rate front, depending on how you want to view comments from the US Fed, there is a tendency for the market to take on new positions, which means that the market could trend a bit higher," UOB Kay Hian dealing director Chan Tuck Sing said.
Stocks could also gain momentum ahead of the quarterly earnings reporting season next month, dealers said.
The Fed raised interest rates by 0.25 percent on Thursday but its accompanying statement appeared to play down the inflation threat and signal that its long cycle of rate hikes may be near an end.
"These are (the) words the market wanted to hear," a dealer with a local brokerage said.
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