Singapore share prices could trade lower in the week ahead due to concerns that rising interest rates would hurt economic activity, dealers said. After a strong September quarter with a 7.0 percent economic expansion, investors were starting to worry about the impact of higher interest rates, they said.
"The prospect of rising interest rates and the fact that liquidity has shrunk will combine to dampen the market outlook," Kim Eng Securities research Seah Hiang Hong said in a note to clients.
"We, however, still hold out to the possibility of a year-end and early 2006 rebound from current levels, as the market appears a little oversold, and investor concerns seem a little bit exaggerated in the short term," Seah said.
Stocks were lifted Friday by Singapore's better-than-expected third quarter economic growth, which was higher than initial estimates of 6.0 percent.
The city-state's 9.8 percent rise in key exports during October, a sharp improvement from the decline in September, also boosted stocks.
For the week ending November 18, the Straits Times index was at 2,293.2 points, up 27.17 points or 1.2 percent from the previous week.
Average daily volume for the week was 739 million shares worth 737 million Singapore dollars (434 million US), down from 791 million shares worth 737 million dollars the week earlier.