Singapore shares are expected to trade lower in the week ahead with investors only stepping in when they see bargain stocks or positive economic data, analysts said. The blue chip Straits Times Index closed on Friday at 2,299.75, down 18.2 or 0.79 percent from the week before.
"We will see one of two things happen in the short-term," said an analyst with a local trading house. "Either the market corrects lower and brings some fresh buying blood in or it drifts sideways until the economic fundamentals hopefully catch up," the analyst said.
Latest US economic data show unemployment rising to a 26-year high of 9.5 percent as job losses surged to 467,000 in June, dashing global hopes of a recovery in the world's biggest economy. Investors are likely to remain cautious when the second quarter earnings reporting season starts later this month, analysts said.
Over the past week, average daily volume was 1.10 billion shares worth 967 million Singapore dollars (666 million US) compared with 1.39 billion shares valued at 1.28 billion dollars the week before.