Singapore shares are expected to trade higher next week on optimism the national budget will contain help for businesses and people affected by the recession, analysts said. Optimism in the United States, Singapore's key export market, ahead of the inauguration of President-elect Barack Obama should also help lift sentiment in the local market, they said.
Singapore's budget will be unveiled Thursday, with investors expecting tax benefits for companies and individuals as well as a fiscal stimulus package. The benchmark Straits Times Index closed at 1,730.45 on Friday, down 4.18 percent, or 75.57 points, from the previous week. Average daily volume was 948.6 million shares worth 949 billion Singapore dollars (638 million US), compared with 1.63 billion shares valued at 1.41 billion dollars the week before.