Singapore shares closed flat on Wednesday in a market concerned over the uncertain fate of a US government plan to bail out the financial sector, dealers said. The blue chip Straits Times Index closed 0.04 percent or 1.09 points higher at 2,477.60, on volume of 1.11 billion shares worth 1.08 billion dollars (763 million US). Gainers led losing issues 287 to 160 with 906 unchanged.
Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson were to testify later Wednesday before a House of Representatives committee after proposing a bailout of up to 700 billion US dollars worth of tainted mortgage-related assets at the root of a global financial crisis.
But members of Congress have expressed reservations over what would be the largest government financial intervention since the 1930s Great Depression. "It's all about what's happening in the US at the moment. It looks as if the bailout plan is going to be delayed," said one trader.
The trader added that more worry came from reports that the FBI is probing allegations of fraud by 26 Wall Street firms including several investment giants whose collapse sent world markets reeling.
Key gainers included ST Engineering which rose 10 cents to 2.68 Singapore dollars, Singapore Airlines which gained 24 cents to 14.74, and Sembcorp Industries which rose six cents to 3.66. Chipmaker Chartered Semiconductor Manufacturing dropped one cent to 43 cents and Singapore Telecommunications fell six cents to 3.34. In the banking sector, DBS was steady at 16.68, UOB dropped two cents to 17.00, while OCBC gained two cents to 7.43.
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