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THE biggest rise in the past six trading days yesterday has taken the local market to within touching distance of 2,500 points and its highest close in 10 months.
A surge of almost 3 per cent in Hong Kong offset Wall Street's lacklustre performance and helped drive the benchmark Straits Times Index (STI) up 34.07 points, or 1.39 per cent, to 2,484.9.
It was the STI's best finish since Sept22 last year. Several shares closed at levels not seen for a year or more, allowing shareholders to recoup much of the losses inflicted by the financial meltdown.
Investors were keen to get a slice of the action here, with 2.092 billion shares worth $1.73 billion changing hands.
Property developers were in the limelight, with several counters surging on optimism that home-buying activity is on the upswing.
Ho Bee and Allgreen Properties closed at 14-month highs.
Allgreen Properties surged 12 cents, or 11.11 per cent, to $1.20, its highest since May 15 last year. The stock has gained 30.3 per cent in the past eight sessions.
Ho Bee jumped 6.5 cents, or 7.14 per cent, to 97.5 cents, its highest since May23 last year.
CapitaLand led gains among the blue chips, adding 16 cents, or 4.29 per cent, to $3.89 while City Developments rose 39 cents, or 4.11 per cent, to $9.88.
Keppel Land rose for the fifth day, adding seven cents to $2.61. DMG Research analyst Brandon Lee is optimistic about the firm's second-half earnings on the back of recovering property sectors here and in China.
In particular, its good blend of township and mid-high projects in China should ensure steady profits, he said.
The Singapore Exchange also saw strong gains, up 37 cents, or 4.86 per cent, to a 12-month high of $7.99.
'We expect earnings momentum and re-rating to drive the stock due to sustained revival in trading volumes,' said JPMorgan, which upgraded the stock to 'overweight' from 'underweight' and almost doubled its share price target, from $5.60 to $10.
In addition to securities trading volumes, it also expects increased derivatives activity and a pipeline of new listings to support earnings.
Rotary Engineering jumped eight cents, or 10.26 per cent, to 86 cents after announcing it had secured two contracts worth $84 million.
DMX Technologies surged to a 13-month high with a hefty 49.67 million shares traded. The stock jumped four cents, or 17.02 per cent, to 27.5 cents, extending Wednesday's 9.3 per cent rally.
Venture Corp, which has a 26 per cent stake in DMX, climbed to as high as $8.39 before closing at $8.26, down three cents.
DBS Vickers analyst Tan Ai Teng expects growth to be sustained through the fourth quarter, bolstered by seasonality and a demand recovery.
Genting Singapore was the day's most actively traded stock with 163.35 million shares changing hands. It rose 4.5 cents, or 5.84 per cent, to 81.5 cents.
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