Banks propel STI 26.97 points higher

A PUSH on the banks yesterday after OCBC and DBS announced better-than-expected results enabled the Straits Times Index to register a 26.97-point gain to 3,264,71 after it had lost a total of 30 points over the first two days of the week.

Turnover in the 30 STI components amounted to 325 million units worth $1.2 billion - in dollar terms 75 per cent of the $1.6 billion done by the whole market. Despite the index's large rise, the broad market excluding warrants recorded 204 rises versus 206 falls, suggesting interest was narrowly focused on only a handful of blue chips.

Gains in the three banks contributed 16 points towards the STI's rise, a powerful reminder of how susceptible the index is to movements in its larger components. The Jardine group, which usually plays a big part in the index's rises and falls, accounted for a further 5 points.