Singapore shares are expected to hold strong going into the new year, with most dealers optimistic about the market outlook. Brokerage firm Citigroup Smith Barney is forecasting the benchmark Straits Times Index to hit the 2,600 points level in 2006, given a stronger economic outlook.
Dealers attribute their optimism to the increase in global electronics demand, stronger regional economies and the two casino resorts to be built in Singapore.
The market may also benefit from a what is expected to be a February pre-election budget, a peaking of interest rates, and positive news on the casinos and property and loan growth, DBS Bank said in a report.
The market rose 13.61 percent over the year. For the week ending December 30, the Straits Times Index rose 19 points or 0.80 percent to 2,347.34 points.
Average volume was 541.5 million shares worth 445.5 million Singapore dollars ($268 million), compared with 580 million.