SINGAPORE - Singapore shares closed flat after a day of thin trading Friday, dealers said.

The blue-chip Straits Times Index closed 0.99 points higher at 2,727.23 on volume of 1.14 billion shares worth 1.16 billion Singapore dollars (837 million US).

Gainers led losers 223 to 175, with 854 issues unchanged.

The STI drifted lower for most of the day as traders took profit after recent gains, dealers said.

"Given the Singapore market had run up quite a lot in recent days... the correction is affecting sentiment today and we are seeing some profit-taking," said Westcomb Securities research head Goh Mou Lih.

US shares closed down on Thursday as dealers said the market was fatigued after a six-day rally, even as weekly US jobless claims fell for a second straight week.

However, dealers were not overtly worried by the dip.

"Some profit-taking is unavoidable after the recent rally, although overall sentiment is still fairly firm thanks to easing worries over the withdrawal of government economic stimulus," said an analyst at a local house.

Banking shares were up, with DBS Group rising two cents to 14.14, Oversea-Chinese Banking Corp up three cents to 8.16 and United Overseas Bank edging up four cents to 18.96.

Among property shares, CapitaLand gained three cents to 4.13 and Keppel Land advanced a cent to 2.85 while City Developments fell six cents to 10.02.

Singapore Telecommunications remained unchanged at 2.93 while Singapore Airlines shed 16 cents to 13.90.

Oil rig maker Keppel Corp slid 18 cents to 8.11 while food and beverage firm Fraser and Neave closed three cents up at 3.88.

- Dow Jones Newswires contributed to this story -