Singapore share prices closed 0.56 percent higher on Tuesday as investors hunted for bargains following the previous day's sharp fall on concerns over China's interest rate increase, dealers said.
They said valuations of local stocks have fallen to "comfortable" levels but chances of a strong rally are slim ahead of US Federal Reserve chief Ben Bernanke's speech later this week.
The Straits Times Index rose 13.69 points to 2,480.99. Volumes totalled 981 million shares worth one billion Singapore dollars (632 million US). There were 332 rising issues, 216 losers and 705 issues were even.
For the blue chips, Singapore Airlines fell 0.10 to 13.40, Singapore Telecommunications dropped 0.02 to 2.460, while ST Engineering rose 0.01 to 2.78.
Most technology stocks closed higher. Creative Technology added 0.20 to 9.45, Datacraft Asia gained 0.01 US dollars to 1.07 US dollars, and Chartered Semiconductor rose 0.03 to 1.23.
Banking stocks closed flat to higher, with Oversea-Chinese Banking Corp steady at 6.45, DBS Group Holdings up 0.20 at 18.20, and United Overseas Bank was 0.20 higher at 15.50. Property stocks closed mixed, with CapitaLand up 0.04 at 4.60, City Developments steady at 9.60 and Keppel Land down 0.10 at 4.22.