Local shares ended Tuesday higher as the Japanese government issued a sunny forecast for the economy, saying it expected moderate growth for the year.

The Straits Times Index closed up 11.88 points, or 0.37 per cent, to 3,244.12

Some 2.32 billion shares worth $1.21 billion changed hands.

Gainers outnumbered losers 244 to 194.

Penny stocks topped the list of most active but Golden Agri Resources was also hotly traded after reporting over a week ago that its net profit for the second quarter had fallen 58 per cent from the year before. The stock dropped 1.5 cents to 50.5 cents.

Genting Singapore was also in the spotlight, rising half a cent to $1.385.