Singapore share prices reversed earlier losses to close 1.41 percent higher on Friday in line with regional bourses, but dealers said concerns remained over the impact of a slowing US economy. Investors chased bargains among select stocks, encouraged by some earnings clarity at banking giant DBS Group and SembCorp Marine, they said.
The blue chip Straits Times Index rose 43.09 points to 3,088.68 on volume of 1.88 billion shares worth 1.94 billion Singapore dollars (1.38 billion US). Rising shares led decliners 471 to 266 with 991 stocks unchanged. The index initially tracked Wall Street's losses after the US Federal Reserve painted a gloomy picture of the US economy over the near-term, but rebounded in the afternoon in line with other regional indices.
DBS led the market's advance, rebounding sharply from early losses, as investors welcomed its move to raise provisions on subprime-related investments to 90 percent. Higher provisions led to an 18 percent decline in fourth-quarter net profit to 491 million dollars for Southeast Asia's biggest bank. "Some uncertainties regarding corporate earnings have been addressed with DBS' writedowns," said K. Ajith, an analyst at UOB Kay Hian.
Positive expectations from the Singapore government's budget report also helped buoy the local shares although expectations of a cut on personal income tax were dashed. DBS gained 60 cents to 17.90 dollars, United Overseas Bank up 36 cents at 18.22 dollars and Oversea-Chinese Banking Corp rose 17 cents to 7.50 dollars.
Property heavyweights were also higher, with CapitaLand up 12 cents at 6.32 dollars, City Developments gaining 18 cents at 12.20 dollars and Keppel Land finishing 12 cents higher at 6.32 dollars.
Singapore Airlines fell 18 cents at 15.82 dollars and Singapore Exchange eased 14 cents to 9.49 dollars, while Singapore Telecom advanced two cents to 3.98 dollars. Shipping firm Neptune Orient Lines closed 23 cents higher at 3.71 dollars.