Singapore share prices closed 1.11 percent higher on Thursday to finish at a new all-time high, boosted by renewed buying in properties and banks, dealers said. The main Straits Times Index gained 32.13 points to 2,916.28 from Wednesday's close, beating the previous record of 2,901.99 set on December 5.
Volume traded was 1.32 billion shares worth 1.31 billion Singapore dollars (856 million US). Gainers outdid losers 38 to 210 withh 697 shares unchanged. "The index is up mainly because of gains in property and banking stocks," a dealer with a local brokerage said.Among properties, City Developments gained 0.20 to 12.10 after announcing this week the redevelopment of an office building in the central business district into a luxury residential complex. Keppel Land was up 0.05 at 6.90, while CapitaLand was up 0.05 at 6.0.
But dealers said they do not expect the market to sustain gains for the rest of the year in the absence of strong fresh buying incentives. Banks were mostly higher, with DBS up 0.40 at 22.10 and UOB up 0.30 at 18.80. Gains in Singapore Airlines also lent support to the STI, dealers said.
The airline added 0.40 to 16.80 with news of the proposed take-over of Qantas Airways by Macquarie Bank boosting sentiment in airline stocks. Frasers Securities research head Najeeb Jarhom said that while SIA is not on the table for a take-over, the higher offer price for Qantas will make SIA more appealing to institutional investors.
"The Qantas take-over should accelerate the liberalisation of the Trans-Pacific route, which SIA has been eyeing for a long time as it opens up the Australian market for travel on SIA to the lucrative US market," he added. For other blue chips, Singapore Telecommunications rose 0.02 to 3.12, Singapore Press Holdings added 0.02 to 4.20 and ST Engineering gained 0.04 to 3.06.
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