Shares edge up 0.13%

The blue-chip Straits Times Index (STI) rose 2.27 points to 1,702.26 on volume of 822 million shares worth $755 million (US$496 million).

Gainers edged losers 196 to 174, with 835 issues unchanged.

Dealers said the STI would most likely head higher in the near term, but with concerns over the economy weighing on investor sentiment.

'We are inclined towards the view that there will be a sizeable rally due to the (low) interest rate environment engineered by the Federal Reserve,' said Phua Ming-weii, an analyst at Phillip Securities.

However, the analyst cautioned that the STI remained volatile, as 'markets very seldom move in a straight line'.

Singapore, a trade-dependent nation, is facing its worst recession in more than 40 years due to weakening global demand for its exports.

Banking shares closed mixed, with Oversea-Chinese Banking Corp easing four cents to $4.80, United Overseas Bank gaining eight cents to $9.80 and DBS remaining at $8.45.

Among property shares, CapitaLand edged up two cents to $2.35, City Developments ended four cents higher at $5.14 and Keppel Land closed up three cents at $1.48.

Singapore Airlines advanced 24 cents to $10.24 while Singapore Telecommunications was unchanged at $2.53.

Investment holding company Sembcorp Industries gained four cents to $2.39 and real estate developer Yanlord Land Group rose seven cents to $1.19.