STI gains 0.6% to 3,139.01 at closing

Singapore’s Straits Times Index gained 0.6% to 3,139.01 at the close. Almost six stocks rose for each that fell on the index of 30 companies. The measure advanced 2.4% in the past five days, the biggest weekly gain in more than three months.

Shares on the measure trade at an average 14.5 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.
Lenders: Royal Bank of Scotland Plc reiterated its “overweight” rating on Singapore lenders, saying rising loans in the city should provide a catalyst for bank shares. Growth in lending accelerated to 24.2% from a year earlier in May, after increasing 21.9% in April, data released by the Monetary Authority of Singapore yesterday showed.

 

DBS Group Holdings (DBS SP), Southeast Asia’s biggest bank, advanced 1% to $14.80. Oversea-Chinese Banking Corp. (OCBC SP), Singapore’s second-largest lender by market value, increased 1.1% to $9.46. Smaller rival United Overseas Bank (UOB SP) gained 0.9% to $19.86.

CitySpring Infrastructure Trust (CITY SP), a gas supplier and owner of a desalination plant in the city, slumped 4.7% to 51 cents. The company said it plans to raise $210.2 million by selling 539 million new shares to existing shareholders at 39 cents apiece. Temasek Holdings, the utility’s biggest shareholder, is committed to buy 85% of the shares on offer.

 

Nera Telecommunications (NERT SP), which supplies wireless equipment to the telecommunications industry, rose 1.4% to 37.5 cents. The company said it won a contract, valued at $4.1 million, from a phone company in the Middle East.

 

Singapore Telecommunications (ST SP), Southeast Asia’s biggest phone company, increased 0.6% to $3.18. SingTel, as the company is known, said it received $3.7 billion of loans to finance general corporate purposes.