Singapore share prices are expected to trade with an upside bias this week although renewed concerns over the economic impact of higher oil prices may depress sentiment, dealers said.
The Straits Times Index (STI) should be well supported at 2,250 points after recent declines but warnings from the International Monetary Fund that higher fuel bills could hurt Asian economies, including Singapore, would likely hold back any investor interest, they said. IMF managing director Rodrigo Rato said Thursday in a video conference with Asian journalists that surging oil prices presented the most serious risk to Asia's economic growth prospects.
Crude prices touched a new trading high this week when New York's main contract, light sweet crude for delivery in October hit an unprecedented 68 US dollars a barrel. For the week to August 26, the Straits Times index gained 0.19 points or 0.01 percent to 2,286.55.
Average daily volume was 889 million shares worth 829 million Singapore dollars (US $499m), up from 850 million shares worth 880 million dollars the week before.