SINGAPORE (Thomson Financial) - Singapore shares closed flat on Friday as profit-taking activities were muted in the afternoon trade, reflecting caution in the market.
'Overall, I see bargain-hunting whenever the market softens,' said Yeo Kee Yan, retail market strategist at DBS Vickers Securities. Recent data showed new home sales in Singapore fell to a five-year low in the first quarter, signaling further cooling in the property market.
'I think the market wants to move up but it's being restricted by the [declines] in the Shanghai market and the Dow Jones industrial average has yet to move up above its trading range,' said Yeo.
Concerns about the weakening U.S. economy and how it will affect the rest of the region also continued to loom large in investors' minds, analysts said.
'U.S. economic momentum has weakened further and the impact on the Singapore economy will likely be more pronounced in the second quarter,' said Chan Tuck Sing, dealing director at UOB Kay Hian Securities.
'What the market needs is some catalyst that will cause a change in thinking,' said Chan.
The benchmark Straits Times Index slipped 1.43 points or 0.1 percent to 3,124.87, closing the week with a minimal loss of 2 points.
Decliners outnumbered gainers 310 to 244 with 1,029 stocks unchanged.
There were 1.18 billion shares traded valued at S$1.25 billion.
Banking shares were mostly higher, with United Overseas Bank up 0.2 percent at S$20.50 and Oversea-Chinese Banking Corp. up 0.2 percent at S$8.52 while DBS Group was down 0.2 percent at S$19.14.
Among blue chips, Singapore Telecom fell 1.0 percent to S$3.85, Singapore Exchange slipped 1.4 percent to S$8.00 and Singapore Press Holdings fell 1.1 percent to S$4.50.
Singapore Airlines rose 0.1 percent to S$15.36 and Singapore Technologies Engineering was up 0.9 percent at S$3.41.
Property heavyweights were mostly higher, with CapitaLand up 1.7 percent at S$6.74 and City Developments up 0.7 percent at S$11.92 while Keppel Land was steady at S$5.81.
'It is comforting to note that despite all the negative news on the property sector, the stocks are ignoring that because valuations have fallen to more attractive levels,' said Yeo of DBS Vickers. Recent data showed new home sales in Singapore fell to a five-year low in the first quarter, indicating a further cooling down of the property market.
Trading debutante China Zaino International Ltd., a maker of backpacks and luggages, closed at 48 cents, 20 percent below its initial public offering price, reflecting the market's weak appetite for new issues. It was the most briskly traded stock with 59.38 million shares changing hands.
($1 = S$1.35)
pearl.bantillo@thomson.com jb/zr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.