Singapore Petroleum Co., the only oil refiner traded on the city-state’s stock exchange, rose the most in three weeks because investors were drawn by an 8% dividend yield and the shares’ attractive valuation, reported Bloomberg.

The stock climbed as much as 4.24% to $2.46, gaining for a third consecutive day. The MSCI AC Asia Pacific Energy Index advanced 1.6% at the close yesterday.

“The company’s valuations are inexpensive relative to regional peers and are backed by a minimum of 8% dividend yield, limiting downside risk from a $2.3 share price level,” DBS Group Research said in a report dated Jan 23. The bank maintained its “hold” rating on Singapore Petroleum shares.

The stock has climbed even after the company reported a drop of 55% in 2008 net income earlier this month.

The refiner is trading at a price-to-earnings ratio of 5.5 compared with Royal Dutch Shell Plc’s 6, PetroChina Co.’s 8.1 and China Petroleum & Chemical Corp.’s 14, according to Bloomberg data.

The shares have declined 60% in the past 12 months while the benchmark Straits Times Index fell 42%.