Singapore share prices are expected to fall further in a volatile market buffeted by worries of a recession in the United States, the world's biggest economy, dealers said. "I expect share prices to decrease further next week with the volatility in the market right now," said Song Seng Wun, regional economist at CIMB-GK Research.
"Market sentiment is still quite weak due to fears over the US recession, and it is now very dependent on news flows. I won't be surprised if the downfalls extend till next week and many weeks after until Asia figures out whether the US recession will hit home."
Recent economic indicators, along with massive losses announced by major US banks this week, have heightened fears that the US economy - a major buyer of global exports - is headed for a recession, sending stock markets worldwide tumbling.
President George W. Bush is expected to unveil a stimulus package in a bid to avert a sharp slowdown. For the week ended January 18, the benchmark Straits Times Index fell 183.09 points, or 5.6 percent, at 3,104.25 over the previous week.
Average daily volume was 2.18 billion shares worth 2.54 billion Singapore dollars (1.78 billion US) compared with 1.88 billion shares valued at 2.12 billion dollars the week before.
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