Singapore shares slightly firmer

05 Jul, 2006

Singapore share prices closed 0.43 percent higher on Tuesday on improving market sentiment as concerns eased over further US interest rate hikes, dealers said. The Straits Times Index rose 10.47 points to 2,448.73 on volume of 1.29 billion shares worth 964.59 million Singapore dollars (610.50 million US). Winners outpaced losers 428 to 140, and 630 shares were even.
"Volume is rather large, which indicates interest is coming back, despite the lack of leads," a dealer at a local brokerage said. "The second half of the year has started off pretty firm. Fear (of further rate increases) in the US is over," the dealer said, adding that expectations of strong corporate earnings for the second quarter helped boost the market.
Property stocks were higher, with CapitaLand up 0.02 at 4.58, City Developments gaining 0.05 to 9.45 and Keppel Land adding 0.02 at 4.10.
CapitaLand got a boost from an announcement that its serviced apartment arm, Ascott Group, has reached a deal to buy two prime properties in Singapore.
Blue chip stocks also rose, with Singapore Airlines gaining 0.10 to 12.70, Singapore Telecommunications up 0.10 to 2.55, Singapore Press Holdings rising 0.02 to 4.14 and ST Engineering adding 0.05 at 2.90. Among banking stocks, DBS rose 0.01 at 18.10 while United Overseas Bank and Oversea-Chinese Banking Corp remained flat at 15.60 and 6.55, respectively.

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