Soaring oil prices are expected to cast a shadow over Singapore stocks trading due to concerns they could slow down economic growth, dealers said. For the week ended October 19, the Straits Times Index (STI) fell 109.27 points, or 2.83 percent, to 3,747.98.
Average daily volume was 2.79 billion shares worth 2.88 billion Singapore dollars (1.97 billion US), compared with 3.22 billion shares valued at 2.64 billion dollars the previous week.
Crude oil futures were trading near historic peaks of 90 dollars a barrel on Friday as increased tensions between Turkey and Kurdish rebels in northern Iraq added to supply concerns. Several of Iraq's major oilfields are located in the north and an incursion by Turkish troops could disrupt supplies, analysts said.
"Any oil price hike will, of course, be a big burden to the broader economy," said Kang Moon-Sung, analyst at Korea Investment Securities. "The issue seems no longer to be whether oil will reach 100 dollars per barrel, but when," said Barclays Capital analyst Kevin Norrish.