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  • Oct 24th, 2005
  • Comments Off on Concerns over US rate hikes to weigh on Singapore trading
Singapore share prices are expected to remain subdued this week on concerns the US Federal Reserve may further raise interest rates to fight inflation, dealers said.

"I think the market will remain cautious because of the concern over inflationary pressures and consequently a possible interest rate hike," said Westcomb Financial research head Chew Sok Chuang.

"To some extent, that will cap the market's upward movement."

The market has yet to fully recover from its 2.89 percent fall to four-month lows on Wednesday in line with other regional stock exchanges in reaction to losses on Wall Street on fears of further US interest rate increases.

For the week to October 21, the Straits Times index was at 2,239.36, down 63.88 points, or 2.78 percent, from 2,303.24 the previous week.

Average daily volume was 1.05 billion shares valued at 988 million Singapore dollars (585 million US), down from 1.19 billion shares worth 1.06 billion Singapore dollars a week earlier.

Copyright Agence France-Presse, 2005


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