Oct 6, 2007
TAKING STOCK: SGX, SingTel help push STI over 3,800 level
THE Straits Times Index (STI) surged past the 3,800- point mark for the first time to a new record high yesterday, aided by frenzied buying of Singapore Exchange (SGX) and SingTel shares.
Ending a week of volatile trading, the STI added 38.81 points to close at 3,822.62, trumping its previous record of 3,793.83, set just three days earlier on Tuesday.
Volume was well above average at 4.79 billion shares - worth $2.62 billion. Gainers outpaced losers by 515 to 295.
Despite a modest overnight showing on Wall Street, the local bourse was boosted by Hong Kong's robust showing yesterday, dealers said.
The Hang Seng Index rose 3.2 per cent to 27,831.52, lifted largely by Chinese commodity stocks and blue chips.
That provided the spark for the STI's steady rise after a pre-lunch blip. Bourse operator SGX continued to bask in the limelight after an analyst upgrade. The counter rose 60 cents to a record close of $15.40 with 12.87 million units traded, after investment bank Goldman Sachs raised its price target from $11.80 to $18.40 yesterday due to SGX's rising daily turnover.
Goldman said SGX is an attractive merger and acquisitions play because the Tokyo Stock Exchange is likely to raise its 4.99 per cent stake.
SingTel shares rose another four cents to $4.02, after CIMB-GK lifted its price target from $4.27 to $4.54 while maintaining its outperform call.
CIMB-GK noted: 'Key catalysts for growth continue to be earnings delivery and increased market preference for highly liquid, safe haven exposure to high-growth mobile markets.'
It also upgraded its rating for the telecommunications sector from neutral to overweight due to strong mobile subscription growth.
That gave the boost for StarHub, which added six cents to reach $3.06, while M1 rose four cents to $2.13.
It was also a bright day for Singapore Press Holdings. Its shares climbed four cents to $4.38 on news that it will set up a joint venture with a Hong Kong-based printing company to provide digital media services in China.
Newly listed Memstar Technology continued to see heavy volumes. It gained a cent to close at three cents yesterday, and was the day's most heavily traded counter, with a whopping 1.38 billion shares done.
Meanwhile, microchip-testing firm United Test & Assembly Center will soon be delisted following the successful takeover of the company by private equity firms TPG Capital and Affinity Equity Partners for $2.2 billion.
The proposal won overwhelming support, with 99.98 per cent of shareholders voting in favour of it yesterday.
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