Singapore share prices will move in response to US inflation data and could fall further, traders said. They said US consumer price index inflation data for May, to be released on Friday night, would be key in determining the local bourse's movement.
"My feeling is we could go lower, maybe down to 2,800," said one trader. Recent comments from Ben Bernanke, Chairman of the United States Federal Reserve, highlighted inflation. His comments unsettled the market and stunned some economists, prompting speculation that the Fed could start hiking rates in the coming months to get ahead of inflation. In Singapore, the government is to release key monthly trade data for May on Tuesday.
The blue chip Straits Times Index (STI) on Friday closed below the psychologically important 3,000 points level for the first time since March.
For the week ended June 13, the STI closed at 2,979.56 points, down 167.17 points or 5.61 percent from the previous week. Average daily volume was 1.26 billion shares, compared with 1.18 billion shares the week before. -Dow Jones Newswires contributed to this story.
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