STI expected to hit 2,500 points next year: analysts

Singapore's benchmark Straits Times Index (STI) is expected to hit 2,500 points by the end of next year, Channel NewsAsia report quoted analysts as saying Friday.

The STI closed at 2,347.3 points on Friday, the last trading day in 2005, up some 13.5 percent as compared with the beginning of this year.

Noting that almost all key sectors performed well this year, the report attributed the increase to oil and gas stocks and yield plays that dominated the stock market in the first half of this year, as well as to property, banking and technology stocks that were in the spotlight in the second half.

Analysts forecast that key sectors like banks and technology will be well-supported by strong fundamentals while the oil and gas sector may continue to grow strongly in 2006.

They also estimated home prices to rise by 5 percent to 6 percent next year with healthy sales transactions, but saying that property stock valuations, which have risen about 30 percent this year, are above their revalued net asset value now.

Source: Xinhua