Singapore share prices continued their record-breaking run, hitting a new all-time high on Tuesday after the government said the economy grew a strong 6.0 percent in the first quarter, dealers said. The Straits Times Index (STI) rose 22.62 points or 0.67 percent to 3,422.62 on volume of 2.57 billion shares valued at 2.16 billion Singapore dollars (1.43 billion US).
This was also a fresh intraday record peak. Gainers beat losers 418 to 376, with 556 shares unchanged. Frasers Securities Research head Najeeb Jarhom said robust first quarter growth in the gross domestic product (GDP) bodes well for corporate earnings this year.
"It should not be a surprise if earnings match or even (beat) last year's 13 percent growth, which could then sustain the STI to heights of 3,600 points and higher," Jarhom said.
"Further upward adjustments to the official GDP growth forecasts in the National Day speech and later in the year cannot be ruled out if the US economy does not slow down abruptly and interest rates remain benign."
But OCBC Investment Research analyst Carmen Lee was less optimistic, saying there could be some short-term volatility depending on whether earnings exceed or fall below expectations. "With the possibility of some near-term volatility, in part due to the earnings results season and economic releases in the US, we would advise clients to take some profits along the way," Lee said.
Gains in blue chips were key supporters of the main index rise. Singapore Telecommunications rose 0.02 to 3.48, Singapore Airlines climbed 0.10 to 17.70 and Singapore Press Holdings advanced 0.06 to 4.60.
Among banking stocks, DBS Group Holdings was up 0.30 at 22.80, United Overseas Bank gained 0.20 to 22.70 and Oversea-Chinese Banking Corp rose 0.20 to 9.70. Most property heavyweights succumbed to profit-taking, with CapitaLand down 0.10 at 8.45 and Keppel Land losing 0.30 to 9.15. City Developments, however, rose 0.20 to 15.90. Technology stocks were lower, with Venture Corp down 0.10 at 14.30, Creative Technology dipping 0.05 to 9.35, and Chartered Semiconductor off 0.01 at 1.46.
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