SINGAPORE (Thomson Financial) - Singapore shares closed sharply higher Friday with the Straits Times index breaking into record territory

SINGAPORE (Thomson Financial) - Singapore shares closed sharply higher Friday with the Straits Times index breaking into record territory as it tracked the gains on regional bourses following Wall Street's overnight rally.

Oil and gas related counters remained active on expectations that demand for oil exploration rigs and other offshore vessels in the industry will remain strong.

The Straits Times Index ended up 30.05 points or 0.83 percent at a record close of 3,654.61, after touching a fresh intraday high of 3,685.01. During the week, the index gained 92.65 points or 2.6 percent.

Gainers beat losers 558 to 329, with 674 stocks unchanged.

Volume was 4.19 billion shares worth 2.91 billion Singapore dollars.

'It was phenomenal for Wall Street to shoot up, it was a shot in the arm for the STI, tipping the uncertainties over,' a dealer at a local brokerage said.

The dealer said the index may hit 3,800 points next week riding on investor confidence in the economy, and coupled with positive external leads.

The government's preliminary estimate, released Tuesday, pegged Singapore's GDP growth in the second quarter at a better-than-expected 8.2 percent year-on-year, having grown by 6.4 percent in the first quarter.

'Having said that, a correction in the index of even up to 10 percent will be healthy for the market given rich valuations (at the moment),' the dealer said.

Oil and gas related counters led gains following a series of upgrades from brokerage houses during the week on expectations of more contract wins going forward.

SembCorp Marine led gainers, rising 20 cents to 5.45 Singapore dollars, off an all-time high of 5.50 dollars. COSCO Singapore was up 10 cents at 4.90 dollars, Keppel Corp (other-otc: KPELY.PK - news - people ) was up 10 cents at 12.90 dollars, and SembCorp Industries was up 10 cents at 5.65 dollars.

Property heavyweights also advanced, with City Developments (other-otc: CDEVY.PK - news - people ) climbing 40 cents to 16.90 dollars, CapitaLand gaining five cents to 7.75 dollars, and Keppel Land rising five cents to 8.55 dollars.

Among blue chip winners, Singapore Airlines (other-otc: SGPJF.PK - news - people ) added 20 cents to 19.60 dollars, Singapore Press Holdings put on eight cents to 4.64 dollars, and Singapore Telecommunications advanced two cents to 3.48 dollars. ST Engineering was up two cents at 3.64 after saying its unit, ST Marine Ltd, won a 168 million Singapore dollar contract to design and build a roll-on/roll-off passenger ferry for France's Louis Dreyfus Armateurs SAS.

Most banking shares extended gains, with DBS Group Holdings up 30 cents at 23.90 dollars and United Overseas Bank (other-otc: UOVEY.PK - news - people ) up 20 cents at 22.80 dollars. But Oversea-Chinese Banking Corp fell five cents to 9.45 dollars, erasing earlier gains.

Chinese confectionery maker China Angel Food Ltd doubled on its debut. The stock closed at 70.5 Singapore cents, above its IPO price 35 cents, on volume of 96.28 million shares.