Singapore shares closed 0.63 percent higher on Friday but dealers were pessimistic that a rally could be sustained. The blue chip Straits Times Index (STI) closed 10.75 points higher at 1,715.35 on volume of 1.05 billion shares worth 941 million Singapore dollars (625 million US). Gainers edged losers 198 to 161, with 872 issues unchanged.
"There is now little reason or few catalysts for a sustained rally, with a weakening credit situation worsening matters," said NetResearch Asia, an equity research firm. DBS Vickers Securities added that additional sectors "must start to strengthen before investors become more convinced of a recovery play." Bank shares closed mixed, as Oversea-Chinese Banking Corp rose seven cents to 5.07, while DBS closed 15 down cents at 8.52 and United Overseas Bank eased two cents to 11.22.
Among the property shares, CapitaLand shed two cents to 2.36 while City Developments and Keppel Land each gained two cents to 5.37 and 1.38 respectively. Singapore Telecommunications was up a cent at 2.53 while Singapore Airlines slid 32 cents to 10.74. Motor vehicle firm Jardine Cycle and Carriage rose 46 cents to 10.58 and conglomerate Keppel Corp closed up 15 cents at 4.32.