Singapore shares are expected to ease on profit-taking next week after a rally that propelled the benchmark index to new all-time highs beyond 2,600 points, dealers said.
The Singapore bourse shook off concerns over surging oil prices to reach a record high of 2,605.12 during intra-day trade Friday before finishing slightly lower at 2,603.45.
Expectations of strong economic growth this year and announcement of a date for general elections - with the ruling People's Action Party (PAP) widely expected to maintain its dominance - helped to boost investor sentiment.
"We think that the overall down cycle is still intact," said DBS Equity Research.
General elections will be held on May 6 with the PAP, which has never lost a race, seeking a sweep of the 84-member parliament, which currently has just two elected opposition MPs.
DBS Research said Friday that the past elections had an "insignificant and inconclusive" impact on the stock market.
But a wide victory margin for the PAP would leave the door open for a post-election rally, as seen in November 2001 when the ruling party got 75 percent of the popular vote.
For the trading week ending April 21, the main Straits Times Index finished at 2,603.45 points, up 59.07 points, or 2.3 percent, from the previous week.
Average volume traded totalled 2.16 billion shares worth 1.49 billion Singapore dollars (940 million US), compared with 1.44 with billion shares valued at 1.31 billion dollars the previous week.