STI rose as much as 1% to 3,145 by midday

Singapore shares climbed to a 16-month high, with United Overseas Bank and commodities firm Noble Group among the biggest gainers.

The Straits Times index rose as much as 1% to 3,145, the highest intra-day level since early August 2011. The bourse has gained 18% so far this year.

Shares of United Overseas Bank gained 2%, while Oversea-Chinese Banking Corp and DBS Group Holdings advanced 1%.

The banks have beaten earnings expectations in their recently reported results. Some analysts have said valuations of the banks were attractive, with Citigroup upgrading its rating on UOB and OCBC last month.

Petra Foods jumped 22% on Wednesday after it agreed to sell its cocoa ingredients unit for US$950 million ($1.16 billion) to Zurich-based cocoa and chocolate products manufacturer Barry Callebaut AG.