May 2 (Bloomberg) -- Singapore's stocks rose the most in more than a week. DBS Group Holdings Ltd. led banking shares higher as some investors judged recent declines excessive given growth in overall bank lending.

``The prospects for loans growth look positive and that should give bank shares a boost,'' in the near-term, said Nicole Sze, investment analyst at Bank Julius Baer & Co. in Singapore, which manages $360 billion worldwide.

Keppel Land Ltd., which is building waterfront apartments and offices in the city's downtown, led an advance by real-estate stocks on speculation demand for office space and residential homes will boost profit. Jardine Matheson Holdings Ltd. and Jardine Strategic Holdings Ltd. climbed after announcing they will pay out more as dividends.

Singapore's Straits Times Index rose 56.52, or 1.7 percent, to 3417.81 at the close, the biggest jump since April 20. Of the measure's 50 stocks, 35 advanced and 10 declined. May futures added 1.5 percent to 418.4. The market was closed yesterday for a holiday.

DBS, the nation's largest bank, gained 40 cents, or 1.9 percent, to S$21.70. It dropped 1.8 percent, the most in more than a week, on April 30 on concern a recent slide in interbank interest rates will reduce lending income.

Singapore's three-month interbank rate, the rate at which banks lend to each other, fell to 2.625 percent on April 27. The rate reached a high of 3.56 percent in July 2006.

``The short-term fall in interbank rates is a concern but should be outweighed by the growth in loans,'' said Julius Baer's Sze.

Jardine Matheson

United Overseas Bank Ltd., the second-biggest lender, advanced 60 cents, or 2.8 percent, to S$22. Oversea-Chinese Banking Corp., the smallest of the three local banks, climbed 20 cents, or 2.2 percent, to S$9.20, snapping a five-day losing streak.

Bank loans grew 10.3 percent in March compared with a year earlier to S$201.4 billion ($131 billion) the Monetary Authority of Singapore said on April 30. That's the highest since the Monetary Authority started compiling the data in Jan. 1991. Singapore's longest expansion in six years and the building of two casino resorts in the city-state has boosted construction activity and loan demand.

Keppel Land climbed 70 cents, or 7.9 percent, to S$9.55. Macquarie Research lifted its stock rating to ``neutral'' from ``underperform,'' citing a brighter outlook for office rentals and demand for high-end Singapore residential projects.

Home Prices

Singapore's home prices are rising as the economy enjoys its longest period of expansion in more than six years. Home prices rose 4.6 percent in the three months ended March, the biggest quarterly gain in seven years, the Urban Redevelopment Authority said on April 27. Office rentals climbed 41 percent in the first quarter, according to the authority.

CapitaLand Ltd., the largest developer, added 5 cents, or 0.6 percent, to S$8.55. City Developments Ltd., the second- biggest, gained 50 cents, or 3.1 percent to S$16.60.

Jardine Matheson, which owns real estate, supermarkets and drugstores in Asia and runs hotels worldwide, jumped $1.10, or 4.7 percent, to $24.50. The company said on April 30 it will pay a final dividend of 50 cents a share for 2006, compared with 45 cents a share in 2005.

Jardine Strategic climbed 60 cents, or 4.4 percent, to $14.10. The company raised its 2006 dividend to 17 cents a share, compared with 16 cents a share in 2005, it said in a statement on April 30.

The following shares also rose or fell in Singapore. Stock symbols are in brackets after company names.

Cosco Corp. Singapore Ltd., a ship repair and bulk carrier unit of China's biggest shipping company, fell 9 cents, or 3.2 percent, to S$2.74. First-quarter profit gained 12 percent from a year earlier to S$42 million, on higher demand for conversions and new vessels.

Citigroup Inc., which has a ``sell'' rating on the stock, said the company delivered an ``uninspiring'' set of results, pointing to a decline in gross margins to 26 percent from 30.8 percent.

Mapletree Logistics Trust, a property trust that owns industrial buildings, added 5 cents, or 3.7 percent, to S$1.39. It plans to buy a property in Hong Kong for HK$780 million ($100 million), which will be funded by debt, the trust said in a statement.

Samudera Shipping Line Ltd. (SAMU SP), a container shipping line, advanced 1.5 Singapore cents, or 3.9 percent, to 40 cents. First quarter profit rose 19 percent from a year earlier to S$8.1 million as it spent less on charter hire and bunker fuel, the company said.

Straits Asia Resources Ltd. (SAR SP), which mines for thermal coal in Indonesia, jumped 11 cents, or 11 percent, to S$1.12. UBS AG recommended investors buy its shares in new coverage, citing its low costs and good growth prospects.

``As one of the lowest cost producers, Straits Asia should enjoy strong upside from the coal price given its high quality coal reserve,'' said Wei Ouyang, Hong Kong-based analyst at UBS in a note. The shares could rise to S$1.33 within 12 months, Ouyang said.

Total Access Communications Pcl (TAC SP), Thailand's second- biggest mobile-phone operator, gained 15 cents, or 2.9 percent, to $5.25. Its shareholders approved the company's plans to list on the Stock Exchange of Thailand, it said in a statement on April 30.

To contact the reporter on this story: Chua Kong Ho in Singapore at kchua6@bloomberg.net

Last Updated: May 2, 2007 05:45 EDT