STOCKS here started the holiday-shortened week on a bullish note yesterday, propelled by major contract wins at some firms and renewed optimism for the economic recovery boosting banks and commodities-related stocks.

 

The Straits Times Index (STI) finished 36.34 points or 1.3 per cent higher at 2,797.88, the highest closing level since Aug 14 last year.

 

Elsewhere in Asia-Pacific yesterday, other major stock indices ended mixed.

 

Hong Kong's Hang Seng Index rose 1.4 per cent to 22,771.39, while the CSI 300 index tracking stocks listed in Shanghai and Shenzhen rose 1 per cent, though stock benchmarks in other South-east Asian markets and Korea ended lower.

 

Markets in Japan were closed for a holiday.

 

Here, 27 of the 30 STI component stocks rose, while just one fell, and two ended unchanged.

 

The main stocks propelling the index higher yesterday were the three banks. DBS Group rose 2.2 per cent to $15.18, OCBC Bank gained 2.4 per cent to end at $8.68, and United Overseas Bank finished 1.7 per cent higher at $19.82.

 

The biggest percentage gainers among the STI members were Sembcorp Industries, which gained 4.6 per cent to end at $3.85, and SIA Engineering Company, which finished 4.1 per cent higher at $3.05.

 

Sembcorp Industries, which owns major businesses in utilities, marine and offshore engineering, environmental management and industrial parks, said yesterday morning that the group had won a contract to jointly develop a US$1 billion water and power plant in Oman with investors from the Middle East.

 

Its subsidiary, Sembcorp Marine, the world's No 2 oil rig builder, was also among the big gainers, rising 2.9 per cent to $3.60.

 

Rival Keppel Corp, the world's biggest rig builder, gained 2.6 per cent to end at $8.34.

 

Keppel said yesterday before trading began that it had won US$304 million worth of contracts from Noble Corp, an offshore drilling contractor, to upgrade and repair two ships.

 

In a separate announcement after trading ended, Keppel said it had received a letter of award for a US$200 million contract to build a rig for Vietnam.

 

Commodities traders Noble Group - unrelated to Noble Corp - and Olam International were also among the big percentage gainers in the STI, rising 2.9 per cent and 2.7 per cent to end at $2.88 and $2.65 respectively.

 

In the overall market, 211 counters rose, outnumbering the 163 that fell, while 498 ended unchanged. That excludes warrants and bonds, whose prices sometimes move in the opposite direction of a company's share price.

 

Trading volume in the overall market was slightly higher than on Friday last week.

 

Some 1.3 billion units worth $1.29 billion changed hands, compared with 1.15 billion units worth $1.16 billion on Friday, excluding shares traded in foreign currencies.

 

The FTSE ST All-Share index that tracks 259 of the most liquid stocks here rose 1.2 per cent, lagging the STI's gains, with 102 of its members rising and 70 falling.

 

Of the 13 FTSE ST industry sector indices, all but one ended higher.

 

The technology index, which tracks 14 stocks, including Aztech Group and ECS Holdings, fell 0.4 per cent.