Singapore shares are expected to remain stagnant in the last days of trading before the New Year, dealers said. "Many investors have closed their books for the year and are unlikely to make any large moves until 2009," said securities firm Westcomb.
Chan Tuck Sing, dealing director at UOB Kay Hian brokerage, shared the same sentiment, saying trading activity in the days before 2009 would be "like this week".
However, Chan expects there will be "a bit more activity" on Wednesday because of year and month-end trading and the expiry of futures contracts. Singapore's bourse will be closed on Thursday before reopening Friday.
"The market will likely be trading sideways for the rest of this year. I do not think the funds can dress up share prices much. Prices are already so low, so how much can they be pushed up given the weak outlook?" said a dealer at a foreign brokerage. He was referring to the common year-end practice of "window dressing", when firms aim to improve the look of their balance sheets.
The Singapore government is to release advance fourth-quarter gross domestic product estimates on Friday. Figures are expected to provide further evidence that Singapore is in recession.
The main Straits Times Index (STI) closed Friday at 1,725.61, down 69.86 points or 3.89 percent from the previous week. Average volume was 493 million shares worth 433 million dollars (300 million US), compared with 936 million shares worth 819 million dollars the week before.
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