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Singapore share prices closed 1.06 per cent higher Friday, encouraged by solid gains in US stocks overnight after data showed the US economy has not slowed as badly as initially feared, dealers said.
The blue chip Straits Times Index rose 34.06 points to 3,241.49 on volume of 1.61 billion shares worth 1.89 billion Singapore dollars.
Rising issues led decliners 393 to 238 with 942 stocks unchanged.
The Dow Jones Industrial Average rose 0.7 per cent overnight to 12,992.66 after the Philadelphia Federal Reserve reported that regional manufacturing activity in the United States was contracting at a much slower pace in May compared to April.
'We are in a situation here where the US has thrown a lot of bad news on the economy and the credit losses, but the data so far has not shown significant declines,' said Mr Malcolm Wood, Asian Equity strategist at Morgan
Stanley in Hong Kong.
Data showing Singapore?s key exports expanded better than expected in April also boosted market sentiment. Non-oil domestic exports grew an annual 5.4
per cent, rebounding from a decline in March, the government said.
'At this juncture it does not seem like global demand is slowing too sharply... although going forward we?ll certainly be looking at the impact of very high prices of fuel, energy and other raw materials on household and business consumption,' said economist Song Seng Wun of CIMB-GK Research.
Banking shares were mixed, with DBS Group jumping 42 cents to 20.48 dollars, Oversea-Chinese Banking Corp up nine cents at 8.97 dollars and United Overseas Bank sliding 10 cents to 20.28 dollars.
Property heavyweights rallied, with CapitaLand gaining nine cents to 6.80 dollars, City Developments up 30 cents at 12.00 dollars and Keppel Land finishing 11 cents higher at 5.87 dollars.
Singapore Airlines advanced 28 cents to 16.30 dollars and Singapore Telecommunications rose two cents to 3.71 dollars.
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