Shares close up 1.60%

SINGAPORE - Singapore shares closed 1.60 per cent higher on Tuesday as investors hunted for bargains following a steep fall the previous day, dealers said.

The blue-chip Straits Times Index rose 26.85 points to 1,699.99 on volume of 1.32 billion shares worth $1.24 billion (US$814 million).

Gainers led losers 246 to 161, with 862 issues unchanged.

Traders said local investors will be taking guidance from the US stock market in the days ahead.

'We need clearer direction from the US side before there's more confidence here,' said a trader from a local brokerage.

Banking shares were up. DBS gained 24 cents to $8.45, United Overseas Bank rose 12 cents to $9.72 and Oversea-Chinese Banking Corp edged up six cents to $4.84.

Property shares also gained. CapitaLand was up nine cents to $2.33, City Developments advanced 12 cents to $5.10 and Keppel Land closed four cents higher at $1.45.

Singapore Airlines was unchanged at $10.00 and Singapore Telecommunications edged up two cents to $2.53.

Motor vehicle firm Jardine Cycle and Carriage rose 64 cents to $11.84, and oil rig maker Keppel Corp gained five cents to $5.01.