Singapore shares finish higher, helped by bank rebounds and Dow futures

LARGE rebounds in the three bank stocks and a firm day for the Dow futures on Tuesday helped the Straits Times Index (STI) post a 9.18 points rise to 3,257.52. The broad market followed with 248 rises versus 186 falls, excluding warrants, but turnover was below average at 1.9 billion units worth S$999.4 million.

Within the index, it was gains for DBS Bank, UOB and OCBC Bank that stood out, their combined rises adding eight points to the STI. Also firm were shares of Jardine Cycle & Carriage, Singapore Exchange and Singapore Telecommunications.

No specific reasons could be found for the rebound, other than short-covering ahead of an expected rise on Wall Street, possibly in anticipation of a dovish statement by the US Federal Reserve after its latest Open Market Committee meeting ends on Thursday.