They said the index tumbled by 1.2 per cent in early trade after the latest US economic data renewed pessimism about the health of the world's biggest economy, but the losses narrowed by midday due to bargain-hunting.

The Straits Times Index rose 29.98 points to finish at 3,025.20 on volume of 1.49 billion shares worth 1.63 billion Singapore dollars.

Rising issues led decliners 398 to 248 with 1,034 stocks unchanged.

'This is the last few days of the current quarter. There is always window-dressing,' said Song Seng Wun, research head at CIMB-GK Research.

Despite the gloomy outlook for the US economy, dealers said the domestic economy should continue to do well given strong manufacturing numbers in the first two months of the year.

'With the backing of the Singapore economy, 'buy on weakness' will still be the preferred investment strategy,' Westcomb Securities said in a note.

Banking shares were mixed, with DBS Group rising 22 cents to 18.60 dollars, United Overseas Bank up 36 cents to 19.60 dollars and Oversea-Chinese Banking dropping one cent to 8.13 dollars.

Property heavyweights ended higher, with CapitaLand up 14 cents at 6.40 dollars, City Developments up 22 cents at 11.20 dollars and Keppel Land rising one cent at 5.54 dollars.

Among blue chips, Singapore Airlines rose 20 cents to 15.46 dollars and Singapore Telecommunications slipped five cents to 3.95 dollars.

Bourse operator Singapore Exchange finished 36 cents higher at 7.76 dollars and media giant Singapore Press Holdings gained two cents at 4.60 dollars. -- AFP