Singapore shares closed 0.69 percent higher on Tuesday but gains were limited by investors consolidating their gains from a recent rally, dealers said. The blue chip Straits Times Index rose 16.17 points to 2,349.87 on volume of 2.45 billion shares worth 1.55 billion Singapore dollars (1.06 billion US). Losers edged gainers 246 to 235, with 782 issues unchanged.
"Fundamentals are still weak but bad news has already been getting lesser and lesser. That, we feel, is a trigger for investors," said Moh Tze Yang, an investment manager with A3 Capital Group. However, dealers also warned that the market's strong showing over the past several weeks was coming to an end.
"The market appears to be entering the final phase of the three-month rally," said a dealer at a local brokerage. Banking shares closed higher. DBS rose 18 cents to 12.52, Oversea-Chinese Banking Corp gained 11 cents to 7.30 and United Overseas Bank inched up six cents to 15.32.
Among property stocks, City Developments advanced 14 cents to 9.09 and Keppel Land closed 14 cents higher at 2.48 while CapitaLand eased four cents to 3.67. Singapore Airlines soared 56 cents to 13.34 and Singapore Telecommunications slipped two cents to 2.96. Oil rig maker Keppel Corp gained 18 cents to 6.96 and chip foundry Chartered Semiconductor was up seven cents at 2.09.