Singapore shares are likely to trade on the down side amid persistent fears the worst is not yet over for the troubled US housing sector, dealers said.
The US government staged a dramatic rescue package for Freddie Mac and Fannie Mae, two mortgage finance giants that underpin trillions of dollars in home loans, but worries remain over the wider health of the sector, they said. "The ride forward is not without pitfalls," analysts from Westcomb Securities said. "The US housing problem is not yet over. It could still post some short-term shock to the market," it said.
In the week ended on Friday, the main Straits Times Index closed at 2,847.73 points, down 79.11 points or 2.7 percent, from 2,926.84 points a week ago. Average volume traded for the week was 1.05 billion shares worth 1.27 billion Singapore dollars (933 million US), compared with 1.16 billion shares worth 1.21 billion dollars the previous week.