A worker fills the tank of a car at a petrol station in Singapore, Jan. 7, 2015. Oil continued to fall overnight, which set record slide of 10 percent in just two days as investors wrestled with the risk of global deflation. (Xinhua/Then Chih Wey)

SINGAPORE, Jan. 7 (Xinhua) -- Singapore shares closed 0.5 percent higher on Wednesday as investors bargain-hunt shares amid collapsing oil prices.

Oil continued to fall overnight, which set record slide of 10 percent in just two days as investors wrestled with the risk of global deflation. Meanwhile, Euro-zone inflation data due later Wednesday are expected to show the first annual fall in consumer prices since 2009, piling pressure on the European Central Bank to launch all-out quantitative easing at its next policy meeting on Jan. 22.

Voyage Research said "we expect trading to be volatile this week due to the current unstable economic climate."

But DBS Group Research said "near term downside looks limited as the Straits Times Index is now closer to 3,250 points that is viewed as a firm support."

The benchmark Straits Times Index rose 16.41 points to close at 3,298.36 points. Trading volume was 1.86 billion shares worth 1.09 billion Singapore dollars. Advancers outnumbered decliners 217 to 181, while 542 stocks closed unchanged.

Singapore Shipping Corporation rose 1.8 percent to 28.5 Singapore cents. It has entered into a 16.5 million U.S. dollar seven-year term loan financing facility with a leading Japanese financial institution. The term loan will be used to finance the acquisition of a Pure Car Truck Carrier vessel. Upon its delivery in January 2015, the vessel will be chartered to a blue chip shipping company.

Global Logistic Properties Limited closed flat at 2.42 Singapore dollars. It announced that it has signed new agreements in China. The agreements total 84,000 square meters of leases. These leases are signed with 6 of the leading third-party logistics providers in China. One of these relationship is with a new customer which is a leading China state-owned logistics company. The facilities are to be used to support distribution needs for e-commerce and food-related products.

Among the top gainers, Singapore Airlines rose 2.4 percent to 11.96 Singapore dollars, whereas Jardine Matheson became one of the top losers by falling 0.8 percent to 59.34 U.S. dollars. (1 U. S. dollar equals to 1.34 Singapore dollars)