Singapore share prices closed 1.06 percent higher on Friday on the back of strong gains in banks and other blue chips, with the Straits Times index touching a new intraday high, dealers said. They noted that investor sentiment was buoyed by comments from analysts at leading financial houses, who said the Chinese economy is likely to hold despite measures by Beijing to cool the market.
The index closed up 37.19 points at 3,548.32 after hitting a new all-time intraday high of 3,570.10. Volume traded was 2.27 billion shares worth 2.73 billion (1.80 billion US). Gainers beat losers 604 to 218, with 664 issues unchanged.
"There is talk of further measures, but some analysts are saying that this drop in the Chinese stock market will not have any significant affect on its economy," a dealer with a local brokerage said. He said the market was still likely to consolidate further in the short term with the STI likely to trade around the 3,500-point mark.
Gains in DBS Banking Group helped lift the main index. The stock put on 0.30 or 1.26 percent to 24.20, Oversea-Chinese Banking Corp was up 0.20 at 9.60 while United Overseas Bank fell 0.30 to 23.70. Among blue chips, Singapore Telecommunications rose 0.02 to 3.56 after the company announced it will launch its Internet protocol television service by the end of this year.
Singapore Press Holdings was flat at 4.38, ST Engineering was up 0.04 at 3.52 and Singapore Airlines put on 0.10 at 18.50. In the property sector, City Developments rose 0.50 to 17.40, CapitaLand was steady at 8.10 and Keppel Land gained 0.20 to 9.35. Among technology stocks, Creative Technology was flat at 7.20 and Chartered Semiconductor rose 0.03 to 1.30.