Shares close up 2.28%

SINGAPORE - Singapore shares closed 2.28 per cent higher on Wednesday, boosted by strong performances in the Chinese and Hong Kong markets, dealers said.

The blue-chip Straits Times Index closed 41.16 points higher at 1,849.57 on volume of 1.52 billion shares worth $1.16 billion (US$777 million).

Gainers led losers 373 to 116, with 761 issues unchanged.

'We are basically following the region,' said a trader at bank-backed brokerage.

'The initial reaction by the market to the swine flu outbreak was probably overdone.'

Hong Kong share prices closed 2.76 per cent higher on Wednesday, while China shares climbed 2.78 per cent.

Banking shares closed higher. DBS advanced 11 cents to $9.10, Oversea-Chinese Banking Corp climbed 12 cents to $5.48 and United Overseas Bank edged up six cents to $11.00.

Among property shares, CapitaLand rose 13 cents to $2.56, City Developments gained 14 cents to $5.82 while Keppel Land was unchanged at $1.67.

Singapore Airlines gained 16 cents to $10.30 and Singapore Telecommunications rose eight cents to $2.54.

Investment holding company Sembcorp Industries was up nine cents to $2.65 and motor vehicle firm Jardine Cycle and Carriage climbed 34 cents to $13.26.