Banks drive STI to 22-month high

RISES in the three local banks on Thursday pushed the Straits Times Index to its highest in about 22 months, up 21.14 points, or 0.65 per cent, to 3,271.11. Turnover was 2.1 billion units worth S$1.9 billion but gains were not widespread - the advance-decline score excluding warrants was 239 to 268.

Large jumps in DBS, UOB and OCBC elevated the index by about 19 points, with DBS alone accounting for 9 points. There were also gains registered by the Jardine stable, namely Jardine Matheson, Jardine Strategic and Cycle & Carriage. The FTSE Financials Index, in the meantime, gained 0.84 per cent at 910.77.

OCBC announced that it has bought National Australia Bank's private wealth business in Singapore and Hong Kong. RHB said it views the deal as positive for OCBC's overall wealth business which in the first quarter accounted for 32 per cent of total income.