Singapore share prices are expected to trade firmer in the week ahead as traders remain upbeat over China despite measures by Beijing to cool its market by raising taxes on stock transactions, dealers said.
"The China market has rebounded since it corrected and investors are still positive about its prospects," said a dealer with a local brokerage. "I guess people are happy with it at the moment. Overseas markets also seem very strong, so we are also following that trend," the broker said.
Regional stock indices were mostly weaker Wednesday after Beijing moved to cool overheating markets by tripling the tax on share transactions but the losses were limited by traders' continued optimism in the Chinese economy.
The Straits Times index closed Friday at 3,548.32 points, up 61.69 points or 1.76 percent over the past week. Average volume traded in a holiday-shortened week was 2.31 billion shares worth 2.1 billion Singapore dollars (1.38 billion US), compared with 2.53 billion shares worth 2.30 billion dollars last week. Financial markets were closed Thursday for a public holiday.
In the week ahead, Singapore Airlines (SIA) will be closely watched after the flag carrier announced it was in "advanced stage" of talks with China Eastern Airlines (CEA) to invest in the Chinese carrier.
SIA said no agreement has been reached.
"We wish to inform shareholders that the company is in an advanced stage of discussions with, inter alia, CEA (China Eastern Airlines) on a potential transaction," SIA said late Thursday in a statement. "However, at this stage, no agreement has been finalised or reached," it added. SIA closed Friday at 18.50, up 0.10 from Thursday.