Singapore share prices closed 0.83 per cent higher on Wednesday after two days of losses, ahead of a key US decision on interest rates, dealers said.

The blue chip Straits Times Index closed 24.46 points higher at 2,986.62.

Up to 1.02 billion shares exchanged hands. Gainers beat losers 289 to 222.

The Federal Open Market Committee was widely expected to hold its base lending rate at 2.0 per cent after a series of aggressive cuts since last September.

Dealers said they were awaiting the Fed's announcement, expected early on Thursday.

Kim Eng Securities added that sentiment could be buoyed in the very short term as managers spruce up their books for end-of-June quarterly reports.

City Developments was one of the biggest blue-chip gainers, rising 3.4 per cent or 36 cents to 10.84 Singapore dollars.

Banks were higher, with DBS up 32 cents to 19.06, UOB 40 cents higher at 18.98, and OCBC up 14 cents at 8.33.

Shipping firm Neptune Orient Lines gained three cents to 3.18, while property developer CapitaLand bucked the uptrend and fell three cents to 5.72. -- AFP