Banks, Jardine units propel STI up 1.05%

A PUSH on the banks ahead of their results next week, and on SingTel and the Jardine group, meant the Straits Times Index (STI) on Thursday jumped 33.76 points or 1.05 per cent to 3,236.50. Turnover was 1.3 billion units worth S$1.1 billion and the broad market's advance-decline score excluding warrants was 274-138.

Apart from bank earnings - OCBC and UOB are due to release their Q3 figures next Thursday and DBS on Friday - traders were said to be betting on Wall Street rebounding on Thursday from a steep loss on Wednesday that was reportedly because of a shooting near the Canadian Parliament.

In total, gains for the three banks added 10 points to the STI. A rise in SingTel contributed a further six points and the Jardine group eight points. "People might argue that the index is in positive territory for the year now, so things are not too bad," said a dealer. "Truth is, if you are not in the banks, Jardine and Reits, the devastation is very painful. The entire penny sector is wiped out."