S’pore Shares Up

Source : TODAY, Monday, September 17, 2007

Asian sentiment remains strong; all eyes on Fed rate cut

SINGAPORE shares are likely to extend their upward trend after Wall Street reported one of its best weeks in months, ahead of a widely-expected interest rate cut in the United States.

News last week that UK mortgage lender, Northern Rock, had asked the Bank of England for emergency funding failed to dent sentiment in Asia, although this suggested a broadening of the fallout from the US sub-prime crisis.

“While dramatic-sounding, this is really just a bit more of the same,” said Mr Greg Gibbs, ABN Amro’s director of foreign exchange. Said DBS Vickers Securities retail strategist Yeo Kee Yan: “All eyes will be on the Fed meeting.”

The Straits Times Index rose 1.36 per cent to 3,536.40. Average daily volume last week totalled 2.40 billion shares worth $2.14 billion, compared with 2.19 billion shares valued at $1.87 billion the week before.

At home, participants will be looking out for August trade numbers, due at 1pm today. Expectations are for buoyant pharmaceutical shipments to buffer the electronics industry, which remained weak even as other regional economies posted healthier figures, economists said.

“Singapore seems to really keep lagging and it’s not clear whether the problem is cyclical or structural,” said Mr Matthew Hildebrandt, an economist at JP Morgan.

Parliament sits today and questions about the impact of the US sub-prime crisis are expected from MPs. — AGENCIES