SINGAPORE (Nov 21): Gains in banks and SingTel drove the Straits Times Index higher in early trading.

Since the recent release of their 3Q2014 results, which beat market expectations, DBS, OCBC and UOB have been widely recommended by analysts, who expect the lenders to continue to do well in the coming quarters, especially as interest rates start rising next year.

SingTel, too, which recently reported resilient September-quarter results, has been flagged as a stock to own as its associates and Australian unit Optus are expected to turn in even better results in 2015.

The STI rose 0.6% to 3,336.10 at 10:22am (0222 GMT).

Market breadth was positive, with about two gainers for every decliner.

DBS gained 1.4% to $19.84, OCBC added 1% to $10.45 and UOB rose 1.2% to $23.65.

SingTel climbed 0.3% to $3.91.

Genting Singapore rose 1.4% to $1.12.

The gaming group has been actively buying back its own shares on the open market after they sank to a four-year low of about $1 last week, when it reported weaker 3Q2014 results and said its near-term outlook would be challenging amid a slowdown in business from VIP players from China.

Mapletree Industrial Trust fell 0.7% to $1.47.

OCBC Investment Research started coverage on the industrial REIT with a "hold" rating and $1.43 price target, saying current valuations are "fair", with the stock trading at a forward price-to-book ratio of 1.21 times.