Singapore share prices closed 0.39 percent higher Tuesday as investors sought out blue chip bargains after the market fell in the previous five sessions, dealers said. However, volumes remained light amid inflation and economic concerns, they said.
The blue chip Straits Times Index rose 12.05 points to 3,115.35 on volume of 1.14 billion shares worth 1.17 billion Singapore dollars (861 million US). Rising issues led decliners 279 to 260 with 1,059 stocks unchanged. "People are just doing short-term trading," said Najeeb Jarhom, research head for retail markets at Amfraser Securities.
He said concerns about high oil prices and inflation will continue to cap market gains. Oil prices were trading above 133 dollars a barrel in Asian trade Tuesday after news of more violence in key African exporter Nigeria.
Crude futures have risen by more than a third since the beginning of 2008 when they struck 100 dollars for the first time. Banking shares were mixed, with United Overseas Bank gaining six cents to 19.70 dollars, DBS Group steady at 19.32 dollars and Oversea-Chinese Banking Corp sliding three cents to 8.62 dollars.
Property heavyweights were also mixed, with City Developments up six cents at 11.06 dollars, CapitaLand steady at 6.30 dollars and Keppel land ending three cents lower at 5.44 dollars. Among blue chips, Singapore Airlines rose 10 cents to 15.60 dollars and Singapore Telecommunications advanced three cents to 3.64 dollars. Container shipping giant Neptune Orient Lines gained four cents to 3.57 dollars after it reported robust growth in shipping volumes and freight rates.