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Singapore shares closed 1.25 percent higher on Tuesday but the market lacked catalysts for a bigger rally and caution remained, dealers said. The blue chip Straits Times Index added 20.95 points to 1,703.29 on volume of 802 million shares worth 942 million dollars (628 million US). Losers led gainers 181 to 159 while 895 issues were unchanged.
"There's no catalyst for a bigger rally at the moment. The details on the bank rescue plan in the United States are still hazy and the stimulus package is old news," said a local trader. United States President Barack Obama vowed to work with distressed US banks to "clean up" their balance sheets and unclog blocked credit lines as his Treasury team prepared to unveil its bailout plan later Tuesday.
CapitaLand ended 27 cents higher at 2.63, a day after it reported an 88.4 percent drop in fourth-quarter net profit and announced it is seeking to raise about 1.84 billion dollars in a rights issue. City Developments gained 14 cents to 5.30, while Keppel Land eased one cent to 1.33.
Singapore Telecommunications rose five cents to 2.48 after reporting a 16.1 percent fall in third-quarter net profit. Singapore Airlines closed four cents higher at 10.44 before announcing net profit fell an annual 42.8 percent in the third quarter to December due to fewer passengers and cargo.

Copyright Agence France-Presse, 2009

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