Bookmark & Share
FAR from cooling exuberance, the weekend seems only to have heightened it with stock markets across the region hitting fresh highs.
It is clear as well that many investors are buying into the rally as share volumes here hit their highest in more than a month, with 3.19 billion shares worth $2.04 billion changing hands.
The Straits Times Index (STI) reflected the enthusiasm, rising for the third straight trading day. It added 43.23 points, or 1.71 per cent, to 2,576.66 - its highest level since Sept 10.
That came on top of the 3.34 per cent gain recorded over Thursday and Friday.
It was a similar story elsewhere, with robust gains that left markets not seen for many months.
Tokyo's Nikkei 225 Average added 1.45 per cent to close above 10,000. Its nine-day winning streak makes it the longest in 21 years.
Hong Kong's Hang Seng added 1.4 per cent to 20,251.62 points, the first time it had closed above 20,000 since Lehman Brothers collapsed in September.
China's benchmark Shanghai Composite Index gained 1.86 per cent to a 13-month high.
Some local blue chips were enjoying the attention. SingTel surged to its highest since Sept 22, adding 15 cents, or 4.56 per cent, to $3.44.
DBS and United Overseas Bank also extended their winning streak into the fourth day. DBS gained 40 cents to $13, while UOB rose 60 cents to $16.84. OCBC advanced 13 cents to $7.43.
SGX rose 40 cents, or 4.79 per cent, to $8.75. The stock has gained 14.16 per cent over the past three sessions.
S-chips, which have been laggards in the market run-up, are now back in favour, chalking up significant gains.
China HongXing was one winner. The stock jumped two cents, or 10.53 per cent, to 21 cents with 126.83 million shares changing hands.
China Sports International surged two cents, or 12.9 per cent, to 17.5 cents, while frozen-dumpling maker Synear Food added two cents, or 7.84 per cent, to 27.5 cents.
Cosco Corp added four cents to $1.26 with 40.17 million shares traded.
The FTSE ST China Index gained 3.36 per cent, outperforming other second-line indices. The FTSE ST Small Cap and Mid Cap Indices rose 1.7 per cent and 0.94 per cent respectively.
Raffles Medical added three cents to $1.09 after reporting a 13.8 per cent rise in second-quarter net profit to $8.8 million on improved operating efficiencies. Revenue rose 6.5 per cent to $53.9 million.
It remains to be seen whether last week's gains can be replicated this week, given that investors are finding it more difficult to find equity bargains after the run-up.
But analysts believe there is room for the market to head higher before correcting.
Chartists, who predict future movements of the market based on past performance, say technical indicators point to more upside potential for the STI.
'We believe that the present uptrend has not yet run its full course,' said DMG technical analyst James Lim.
DBS Vickers expects the STI to reach 2,560 before seeing a correction of between 20 to 30 per cent.
'Technically, we do not rule out the STI surpassing the 2,560 level, up till 2,637 before the anticipated consolidation starts,' said the brokerage. It added the consolidation may see the STI going down to the 2,230 or 2,170 level.
Credit Suisse, which has an 'overweight' on the Singapore market, believes further consensus earnings upgrades could be a catalyst for the market to head higher in the near-term.
Search Property News
