Singapore shares open higher with STI up 9 points

SHARES in the local bourse opened higher with the key Straits Times Index (STI) rising 8.58 points to 3,231.27.

Some 38 million shares worth S$48 million changed hands with 73 counters up and 40 down.

The higher open follows a positive showing in Wall Street overnight on Tuesday where US stock indices closed its fourth straight session of gains as the White House unveiled details of plans for the country's budget.

DBS Group Research pointed out in a recent note that the STI was currently trading at just under 14.02 times of blended FY17/18F price earnings even as the earnings revision trend has turned negative again following the first-quarter 2017 reporting season.

It maintained its view that the local bourse's key index has priced in the year-to-date recovery optimism. It expects near-term resistance for the STI at 3,250 and pullback support at 3,150.