Singapore share prices closed 0.54 percent on higher on Wednesday after Wall Street gained despite weak economic data, dealers said. But they said the index closed off the day's highs as investors locked in profits in select blue chips.
The blue chip Straits Times Index closed 16.62 points higher at 3,094.45 on volume of 1.52 billion shares worth 2.02 billion Singapore dollars (1.43 billion US). Rising issues led decliners 395 to 319 with 1,035 stocks unchanged.
Dealers said investors were encouraged by Wall Street's positive response to IBM Corp's 15-billion US dollar share buyback plan, shrugging off US economic data that reported a higher-than-expected rise in January inflation and waning consumer confidence. "The Asian markets benefited from stronger US stock markets," said Khiem Do, of Asset Baring Management.
Expectations that the Federal Reserve will further cut interest rates on March 18 will also help keep the markets afloat in the near term, said Khiem. Banking shares were mixed, with DBS Group falling 18 cents to 17.70 Singapore dollars and Oversea-Chinese Banking Corp up 11 cents at 7.78.
United Overseas Bank was down 42 cents at 18.42 after reporting its full-year 2007 net profit fell 17.9 percent in the absence of a hefty one-time gain booked the previous year. Among property stocks, CapitaLand gained 16 cents to 6.56, City Developments was up 52 cents at 12.32 and Keppel Land rose 11 cents to 6.07. Singapore Telecommunications gained two cents to 3.92 and Singapore Airlines rose four cents to 15.80.