Singapore share prices closed 1.6 percent higher on Thursday with the benchmark returning to record highs on blue chip buying amid strong economic growth, dealers said. The Straits Times Index closed up 61.32 points at 3,875.77, beating the previous all-time peak of 3,865.75 reached on Tuesday.
Volume totalled 2.81 billion shares valued at 2.76 billion Singapore dollars (1.89 billion US). There were 563 rising issues, 267 stocks declined and 828 were unchanged.
Index heavyweight Singapore Telecommunications (SingTel) and banking shares led the gains on expectations their results in the three months to September will be healthy. Morgan Stanley regional strategist Malcolm Wood said the benchmark index will likely cross 4,000 points before the year ends given the strength of capital flows.
"We're seeing good inflows from international investors into the region. That's not unusual in the fourth quarter, but underlying that is Singapore has got good fundamentals," he said. Asian growth and prospects of further US interest rate cuts will continue to boost sentiment in regional equity markets, said Michael Kerley, director of pan-Asian equities at Henderson Global Investors.
In the banking sector, DBS Group gained 20 cents to 22.50, United Overseas Bank rose 40 cents to 22.70 and Oversea-Chinese Banking Corp added 10 cents to 9.30. Singapore telecom companies also rose due to strong demand for mobile phones. SingTel gained 10 cents to 4.14, while MobileOne added one cent to 2.13 dollars. StarHub gave up early gains to close flat at 3.10.
Singapore shipyards also gained, driven by demand for oil rigs and other vessels. Labroy Marine was up 22 cents at 2.74, Keppel Corp advanced 20 cents to 15.0 and SembCorp Marine rose 10 cents to 5.35.
Cosco Corp Singapore, a shipping company that owns majority of unlisted Chinese shipyard Cosco Shipyard Group, added 45 cents to 6.90 and China-based Yangzijiang Shipbuilding gained eight cents to 2.69. Bourse operator Singapore Exchange rose 20 cents to 15.80. Earlier in the week, it reported a 172 percent increase in first-quarter net profit on strong trading volumes.