STI gains 0.7% to 3,066.85 at closing

Singapore’s Straits Times Index gained 0.7% to 3,066.85 at the close. Five stocks rose for each that fell in benchmark index of 30 companies. The gauge advanced 2.1% this week.

Shares on the measure trade at an average 14.1 times estimated earnings, compared with about 15.6 times at the end of 2010, according to data compiled by Bloomberg. The following shares were among the most active in the market.

Airlines: Singapore Airlines (SIA SP), the world’s second-biggest carrier by market value rose 2.3% to S$14.24. Tiger Airways Holdings (TGR SP), the budget carrier partly owned by Singapore Air, added 1.7% to $1.21.

 

The International Energy Agency agreed to release 60 million barrels of oil from its strategic stockpile, sending crude oil futures tumbling 4.6% in New York yesterday. Regional airlines should rally on this news as this will help reduce operating costs, K. Ajith, an analyst at UOB-Kay Hian Holdings in Singapore, wrote in a note to clients today.

CapitaLand (CAPL SP), Southeast Asia’s biggest developer by market value, increased 3.6% to $2.92. The company said it hired dealmaker Arthur Lang from Morgan Stanley to be group chief financial officer as it pursues investments in the region. He will take over from Olivier Lim, who becomes the head of strategic corporate development at the Singapore-based company.

 

Keppel Telecommunications & Transportation (KPTT SP), the provider of logistics services and operator of data centers, surged 10% to $1.32. DBS Group Holdings  initiated coverage of the stock with a “buy” rating and a share-price forecast of $1.65, saying the company is benefiting from growing demand for computer server hubs and logistics facilities.

 

Raffles Education Corp. (RLS SP), operator of fashion- design schools in Singapore, China and India, jumped 6.5% to 49 cents. The company said it agreed to sell its 50% stake in Value Vantage, a provider of training services in China, for $46 million.