Singapore shares close higher on blue-chip led gains
Tuesday, November 6th, 2007SINGAPORE (Thomson Financial) - Singapore shares closed slightly higher Tuesday as investors sought out blue chip bargains to end a three-session losing streak.
But gains were capped as some investors stayed on the sidelines, still worried about the subprime credit crisis in the US.
The Straits Times Index closed up 12.92 points or 0.4 percent at 3,683.10, after trading between 3,660.81 and 3,704.16.
Gainers outnumbered decliners 480 to 257, with 250 stocks unchanged.
There were 2.2 billion shares traded valued at 2.6 billion Singapore dollars.
While newsflow on domestic fundamentals are rosy, investors remain wary about the financial markets and the health of the US economy.
‘The volatility of the market tells you there is concern,’ said K Ajith, analyst at UOB Kay Hian.
Market upside is limited near-term and further sharp swings can be expected in the STI this month, with ‘cracks appearing in key sectors’ such as property, banks, and oil and gas, Ajith said.
‘It is not going to be smooth sailing from here onwards,’ the UOB Kay Hian analyst said while recommending that investors sell into strength and switch to defensive plays with strong yields.
Gains were led by a rebound in banking stocks.