Wall Street on the RUN!

TAKING STOCK: Wall St gains power STI to another record high
By Alvin Foo

EARLY blue-chip buying powered the local market to its second record close in as many days, as confident investors rushed to snap up major plays. The Straits Times Index closed 38.61 points, or 1.03 per cent, higher at 3,793.83, although at one point it breached the 3,800 level, hitting 3,829.52.

The strong volumes continued as well, with 4.13 billion shares worth $4.36 billion traded - up from last week's daily average of 2.58 billion shares valued at $2.75 billion.
Wall Street provided the spark with its overnight record close - a sign that investors believe the crisis in global credit markets is abating.

Banking counters in Singapore reflected that belief and kept up their impressive recent performance. DBS Group Holdings gained 60 cents to $22.50 to be the day's second- highest gainer, UOB climbed 20 cents to $22.60, while OCBC Bank closed 20 cents higher at $9.15.
The day's top riser was Singapore Exchange, which surged 90 cents to a record $14.40, as local trading volumes rebounded to the four-billion share level.

Property stocks also had a day of gains, after data showed that housing prices had hit a 10-year high in the third quarter. CapitaLand climbed 10 cents to $8.30, while Keppel Land ended 25 cents higher at $8.65, on news that it will be expanding its Vietnam presence via a joint venture to build 1,500 apartments in Ho Chi Minh City.

SembCorp Marine, the world's second-largest oil-rig builder, jumped 33 cents to a record $5.15, following an analyst price upgrade and a proposed joint venture in Brazil. Citigroup raised its target price for the company from $5.29 to $5.60, while keeping its 'buy' call on the back of higher earnings expectations until 2009.

But there was little cheer for China plays, which lost steam despite strong gains in early trading, as investors locked in profits following two days of massive gains.

Cosco Corp shed 30 cents to $6.70 after hitting the day's high of $7.20, while fellow shipbuilder Yangzijiang dropped 11 cents to $2.55, after rising to an intra-day high of $2.86.

AmFraser Securities research head Najeeb Jarhom said: 'US fund managers may well be behind the latest surge in China plays to reap hefty capital gains to compensate for the weakening US dollar, but to ensure this, they may have to cash in early.

'So retail players should be cautious, as these China plays could fizzle out quickly. It should be safer to stick to local big and mid-cap stocks.'

Source: The Straits Times