Bull run continues with buying spree

Bull run continues with buying spree

SINGAPORE - The bull run that drove local shares to a five-year high on Wednesday showed no signs of slowing yesterday, as investors continued to pile into the market.

The buying surge pushed the benchmark Straits Times Index (STI) up 19.76 points to close at 3,432.78 - its best finish since January 2008.

The exuberance in the local market was reflected in some markets across the region, though the fire appeared to have gone out of others.

The Korean market index rose 1.2 per cent, but Hong Kong's Hang Seng Index fell 0.14, while Japan's Nikkei slid 0.66 per cent.

The broader view is more buoyant with the STI up 8.4 per cent this year, well ahead of Hong Kong's 2.5 per cent rise and the 4.6 per cent lift recorded in Malaysia. However, it is trumped by the 11.8 per cent increase in Australia and Nikkei's remarkable 36.5 per cent surge in Japan.

The rally is being fuelled by a number of factors, said CIMB economist Song Seng Wun.

Investors around the world are scooping up shares in anticipation of stronger earnings later in the year, on the back of perceptions that the global economy has turned and that the United States is on more stable footing.

Wall Street has been setting the pace. The Dow Jones Industrial Average ended at 15,105.12 on Wednesday after closing at 15,056.20 on Tuesday, the first time it had closed above 15,000 points.

It is now up 16.32 per cent for the year.

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