SINGAPORE - Singapore shares closed 1.03 percent higher Wednesday ahead of a US Federal Reserve decision on interest rate policy, dealers said.

The blue-chip Straits Times Index rose 27.09 points to 2,648.64. Volume traded totalled 1.13 billion shares worth 999 million Singapore dollars (719 million US).

There were 286 rising issues, 198 losers while 764 issues were flat.

"People are watching interest rate indications from other countries, but it's still a good time to buy as there's value in a number of stocks," said a dealer at a foreign brokerage.

The US Federal Reserve is expected to hold its key lending rate steady in a range of zero to 0.25 percent this week.

The European Central Bank and Bank of England will announce policy decisions the following day.

Among the local blue chips, Singapore Airlines rose eight cents to 13.60 dollars and Singapore Telecommunications was steady at 2.92 dollars.

DBS Group Holdings firmed eight cents to 13.04 dollars, United Overseas Bank put on 26 cents to 17.68 and Oversea-Chinese Banking Corp was 13 cents higher at 7.72.