Tide of flat trading turns as STI gains 1%

AFTER two days of trading flat, the tide turned for the Straits Times Index (STI), which gained 34.18 points, or one per cent to close at 3,326.83 on Wednesday - thanks largely to a boost from the three local banks, and news of strong US earnings.

Turnover amounted to an average of 1.59 billion units worth S$1.31 billion, lower than the Singapore Exchange's (SGX) securities daily average of 1.92 billion shares worth S$1.36 billion as at June this year. Gainers outnumbered losers 219 to 178.

OCBC was the frontrunner among the bank stocks, rising 3.2 per cent, or 36 Singapore cents to S$11.66; while UOB gained 2.7 per cent, or 70 Singapore cents to S$26.89; and DBS advanced 1.2 per cent, or 31 Singapore cents to S$26.47. One broker noted that the market has started upgrading the banking sector with better return on equity (ROE) numbers expected as the banks begin reporting their Q2 results next week.